Rupee ends flat

KARACHI: The rupee ended almost flat in the interbank market on Wednesday, down 5 paisas, supported by absence of any fresh triggers, dealers said.

The rupee closed at 178.24 to the dollar, 0.03 percent down from the previous close of 178.19.

In the open market, however, the local currency inched to gain 20 paisas settling at 180.30 against the greenback.

“We expect the rupee to stay stable due to the absence of any fresh triggers. It’s likely to hold in a 178.20-178.40 range in the last two remaining sessions of 2021,” said a foreign exchange dealer.

“The restoration of a stalled $6 billion IMF (International Monetary Fund) loan programme will remain crucial for the currency direction in the near term. The government’s moves will be watched to see whether it is successful to qualify the $1 billion loan tranche under IMF Extended Fund Facility,” he added.

Dealers, however, feared that the local unit might lose ground against month-end importer dollar demand and weak supplies.

The government has set to meet the conditions imposed by the IMF to win its executive board approval for the disbursement of the next installment. The federal cabinet approved the State Bank of Pakistan amendment bill but deferred the approval of the Rs360 billion mini-budget on the back of increasing criticism against it as the measures to be announced in the finance bill to fuel inflationary pressures.