Rupee ends firmer

KARACHI: The rupee ended firmer against the dollar on Friday, amid high dollar demand for import and corporate payments, dealers said.

The rupee eased by one paisa to Rs178.13 against the dollar from the previous day’s closing of Rs178.12 in the interbank foreign exchange market.

The dealers said the demand for the foreign currency was high due to the last days of the outgoing calendar year.

They said the dollar demand for imports and corporate payments are usually high by the end of the year-end. The foreign companies operating in Pakistan repatriate dividends and profits by the end of every quarter.

The dealers said the rupee was supported by supply of the greenback in the shape of export receipts and workers remittances.

Further, curbs on foreign exchange buying by individuals imposed by the central bank also helped the rupee maintain the current level.

The State Bank of Pakistan (SBP) on December 19, 2021 imposed restrictions on the purchase of dollars by individuals. According to the new instructions an individual can purchase a maximum $10,000 in a day and $100,000 in a year with certain documentation.

The dealers; however, said that the large trade deficit and widening current account deficit remained a challenge for the rupee’s stability in the coming days.

The rupee remained under pressure since the start of the current fiscal year. The local currency fell Rs20.59, or 13.06 per cent, from June 30, 2021 closing of Rs157.54 to the closing of Rs178.13 on December 24, 2021.

In the open market, the buying and selling of the dollars was recorded at Rs179.90/Rs181.30 at 3:50pm PST.

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