Rupee erases previous session’s losses

KARACHI: The rupee erased previous session’s losses to end slightly higher on Tuesday on soft dollar demand from importers, dealers said.

The rupee closed at 277.8 to the US dollar, slightly up from its previous close of 277.86 in the interbank market.“We observed a decline in dollar purchases from importers, but there was a plentiful supply of dollars because of the inflow of remittances and export proceeds,” a currency dealer said.

The rupee strengthened in the open market as well. The local unit was trading at 280.45 per dollar, compared with 280.68 on Monday.Dealers said the rupee gained ground in the open market after the State Bank of Pakistan (SBP) extended the date for the import of cash US dollars against the export of foreign currencies till June 2025. According to dealers, this move will help maintain a better supply of dollars in the open market.

Earlier in March, the SBP allowed exchange companies to import US dollars in cash up to 50 per cent of the value of their export consignments till June 30, 2024.Another significant development, meanwhile, is that a Senate panel has demanded prompt action against commercial banks for allegedly opening overpriced letters of credit in 2022 and manipulating the US dollar exchange rate to earn Rs65 billion, according to reports.