Rupee erases previous sessions’ gains

KARACHI: The rupee gave up its gains made over the previous two days and finished marginally lower against the dollar in the interbank market on Thursday.

The rupee closed at 277.74 to the US dollar, compared with Wednesday’s close of 277.63. Dealers said the local unit experienced a marginal decline due to increased dollar demand from importers and feeble supplies brought about by lower greenback sales from exporters and sluggish remittances.

The rupee edged higher in the open market. It was trading at 279.86 per dollar, compared with 279.88 in the previous session. Analysts claim that investors are optimistic because of the numerous initiatives being carried out to support the economy as part of the International Monetary Fund programme. The country’s macroeconomic indicators show signs of stability. Pakistan’s foreign exchange reserves have increased, the exchange rate is stable, and inflation has decreased.

Investors were worried about fluctuations in global oil prices due to concerns that the widening Middle East conflict could disrupt crude oil flows from the region. A spike in international oil prices would make oil imports more expensive, putting pressure on Pakistan’s current account deficit. On Thursday, Brent crude futures rose by $1.52, or 2.06 per cent, to reach $75.42 per barrel.