The Pakistani rupee gained 10 paisas against the US dollar in the interbank foreign exchange market on Thursday, closing at Rs154.47 compared to the previous day’s closing of Rs154.57, according to currency dealers.
The modest appreciation in the rupee came as a result of improved supply of the dollar, driven primarily by higher inflows from export proceeds and workers’ remittances. Dealers noted that the increased availability of the greenback helped ease pressure on the rupee in the interbank market.
“The foreign exchange market saw better dollar liquidity today, which allowed the rupee to edge up slightly,” said one dealer. He added that exporters had accelerated their conversions, while regular inflows of remittances supported the rupee’s position.
Meanwhile, on the demand side, importers remained cautious and restrained from heavy dollar buying. Market sources attributed this hesitation to growing health concerns over imports from China amid the global spread of the coronavirus. “There’s visible uncertainty in import activity, especially from China, which has slightly cooled down the demand for dollars,” said a senior banker.
During the day, the rupee traded within a narrow band. The market opened between Rs154.55 and Rs154.57, touched a day high of Rs154.58, and a low of Rs154.45, before settling at Rs154.47.
In the open market, the rupee remained stable, showing no change in its value. The buying and selling rates of the dollar stood at Rs154.50 and Rs154.80 respectively, matching the previous day’s closing levels in the cash-ready market.
Market watchers are closely observing upcoming economic data and external inflows, as these will likely determine future rupee-dollar trends in the days ahead.