KARACHI: The Pak Rupee gained two paisas against the dollar on Wednesday amid higher demand for import and corporate payments.
The rupee ended Rs160.35 to the dollar from last day’s closing of Rs160.37 in the interbank foreign exchange market.
Currency dealers said that the local unit saw further recovery. They said that the market witnessed demand for import and corporate payments. However, supply of the foreign currency supported the local unit to make gain.
The dealers hoped that the rupee likely to make gain in coming days owing to inflows of workers’ remittances and export receipts.
Market analysts said the rupee’s movement remains linked to import payments and external inflows, with volatility expected to stay range-bound in the short term. They added that stability in global oil prices and improved foreign exchange reserves could further support the local currency in upcoming sessions. However, any surge in import bills or external debt repayments may put pressure on the rupee, limiting its gains against the dollar.
Traders said market direction will largely depend on inflows from remittances, export earnings, and overall dollar demand in the interbank market. Overall sentiment remains cautiously optimistic as economic indicators show gradual improvement in external account stability in the coming weeks ahead also.