KARACHI: The Pak Rupee strengthened by 46 paisas against the dollar on Wednesday owing to lower demand of the foreign currency on expectation of declining demand.

The rupee ended Rs155.39 to the dollar from Monday’s closing of Rs155.85 in the interbank foreign exchange market.

The market was remained closed on Tuesday on the occasion of Pakistan Day.

Currency experts said that the importers were cautious in placing new import orders due to rising case of coronavirus in the country.

The importers were expecting that the government would take harsh measures including strict lockdown in the wake of third wave of coronavirus.

Market analysts said the rupee’s appreciation reflected improved sentiment in the foreign exchange market as import demand slowed and external payments decreased. They added that stable remittance inflows and expectations of policy continuity supported the local currency in the interbank market.

However, traders warned that volatility may return if import bills rise or external financing conditions tighten in coming weeks. Experts said the exchange rate outlook would remain sensitive to global oil prices, inflation trends, and policy decisions by the central bank, while domestic economic stability, trade balance improvements, and continued remittance support could help maintain rupee strength in the near term, though any sudden surge in dollar demand may quickly reverse recent gains in market sentiment overall outlook stable.