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Rupee ends slightly higher against dollar

Our Correspondent
Thursday, Sep 19, 2024

KARACHI: The rupee closed marginally stronger against the dollar in the interbank market on Wednesday.The rupee ended at 278.04 to the dollar, compared with 278.12 in the previous session.Financial markets were closed on Tuesday (Rabiul Awwal 12, 1446 A.H.) on the occasion of Eid Miladun Nabi.

Dealers said the rupee kept rising due to optimism surrounding the International Monetary Fund’s loan programme for Pakistan. In addition, the improved dollar supplies supported the local unit.

Last week, the IMF announced that its board will meet on September 25 to review the $7 billion loan programme for Pakistan.Analysts expect the rupee is unlikely to remain stable in the coming months due to ample dollar liquidity supported by healthy remittances and subdued imports amid drop in global oil prices.

Analysts predict that remittances will continue to be strong going forward, providing excess liquidity in the system. The major rupee depreciation appears improbable given that the dollar index is expected to be low and the real effective exchange rate (REER) would likely remain below 105. There is little immediate pressure from increased imports, including suppressed oil prices, due to a weak local market demand.