Rupee ends flat amid higher import demand

Rupee ends flat amid higher import demand

The Pakistani Rupee remained stable against the US Dollar on Friday, closing at Rs156.19 compared to the previous day’s rate of Rs156.18 in the interbank foreign exchange market. The currency maintained its position despite increased demand for the dollar due to impending weekly holidays, dealers said.

Currency experts noted that the higher demand for the greenback was primarily driven by import and corporate payments, as businesses rushed to settle their transactions before the weekend. However, the rupee was bolstered by a sufficient supply of export receipts and workers’ remittances, preventing any significant devaluation.

The foreign currency market began the day trading within the range of Rs156.05 to Rs156.15. Throughout the trading session, the rupee experienced fluctuations, reaching a high of Rs156.20 and a low of Rs156.07, before settling at Rs156.19. This trading pattern highlights the delicate balance between the demand for dollars and the availability of foreign currency inflows.

In the open market, the rupee showed a slight appreciation. The buying and selling rates for the dollar were recorded at Rs155.90 and Rs156.40, respectively, compared to the previous day’s closing rates of Rs156.00 and Rs156.50. This appreciation in the open market suggests a relative ease in the pressure on the local currency.

Market analysts attributed the stability of the rupee to ongoing support from remittances and export earnings, which continue to provide a buffer against the high demand for dollars. The consistent inflow of foreign currency from Pakistanis working abroad and export activities plays a crucial role in maintaining the exchange rate.

The central bank’s policies also contribute significantly to the rupee’s stability. Measures to enhance foreign exchange reserves and manage market liquidity are critical in ensuring that the currency remains steady amidst varying demand pressures. The central bank’s interventions, coupled with vigilant monitoring of global economic trends, help in navigating the complex dynamics of the foreign exchange market.

As businesses and consumers prepare for the weekend, the stability of the rupee offers a semblance of predictability in financial planning. However, the underlying pressures from import and corporate demands necessitate continued vigilance and strategic management to maintain this stability.