Rupee appreciates

KARACHI: The rupee recouped losses to end stronger on Wednesday due to easing demand from importers, with dealers expecting to see the local unit stable in the days ahead.

The rupee closed at 163.47 per dollar, 0.26 percent up from the previous close of 163.89 in the interbank foreign exchange market.

The rupee ended unchanged at 164 to the dollar in the open market.

“The demand for the greenback from importers was low, as imports payments had covered, which pushed the domestic currency higher,” said a foreign exchange dealer.

“The decline in international oil prices and the expected inflows from the IMF supported the rupee,” he added.

Pakistan is likely to receive $2.8 billion from the International Monetary Fund by the end of this month as the board of governors of the IMF has approved a general allocation of Special Drawing Rights (SDRs) equivalent to $650 billion for boosting global liquidity. The general allocation of SDRs would become effective on August 23, 2021. As a result of these inflows, the central bank’s foreign exchange reserves are expected to rise to record $20 billion.

“We expect the local unit to stabilize for now and it’s unlikely to cross the existing 163 levels on the back of slowdown in dollar demand for import payments,” said another dealer.