Rupee strengthens on low dollar demand

KARACHI: The rupee rose slightly against the dollar on Monday, supported by weak import demand and a current account surplus in November, dealers said.

The rupee closed at 283.21 per dollar in the interbank market, up 0.02 percent from Friday's close of 283.26. It was unchanged at 284.50 in the open market. The current account balance turned positive in November after four consecutive months of deficits. The country recorded a current account surplus of $9 million in November.

"The rupee gained some ground as the dollar demand from importers remained low and the current account data boosted the market sentiment," said a currency dealer at a major bank.

The dealer said the rupee also benefited from the declining global oil prices, which eased the pressure on the country's import bill and foreign exchange reserves.

The SBP data also showed that Pakistan's real effective exchange rate (REER), which measures the rupee's value against a basket of trading partner currencies, slightly depreciated in November, indicating improved competitiveness.

The REER index fell to 98.2 in November from 98.5 in October, while the nominal effective exchange rate (NEER) index, which measures the rupee's value against the dollar, dropped to 37.99 from 39.18.