Rupee ends flat versus dollar in interbank market

KARACHI: The rupee held steady in the interbank market on Monday due to matching demand and supply of dollars.The rupee closed at 277.75 against the US dollar, unchanged from its close in the previous session.

“Despite the demand for dollars from importers, the rupee remained firm during the session thanks to improved inflows from exporters and remittances,” a foreign exchange trader said.However, the local currency did experience a tiny decline in value in the open market, trading at 278.79 to the dollar, down from 278.77 the previous session.

Analysts say the rupee stayed largely range-bound despite payments for oil and other imports. Traders do not anticipate any substantial demand, even as year-end draws near. There should not be any major pile-up because defence-related payments are also being made on schedule. The remarkable accomplishment of raising remittances has been Pakistan’s biggest game-changer. This has led to monthly current account surpluses and improved dollar liquidity in the market, and it alone is leading to an annual rise of around $6-8 billion.