Currency Market Review: Rupee remains firm

Staff Report

KARACHI: There were no major changes in the foreign currency rates in the open currency market during the last week, said foreign exchange dealers.

The dealers said there was normal demand for and supply of the foreign currencies during the week, which helped the rupee remain firm.

The greenback closed at Rs 60.35 for buying and Rs 60.45 for selling in the kerb market on Saturday. During earlier five sessions of the week, the US currency traded at Rs 60.45 for buying and Rs 60.50 for selling.

The pound sterling closed at Rs 105.50 for buying and Rs 105.60 for selling after rising 35 paisas. It was trading at Rs 105.15 for buying and Rs 105.25 for selling last weekend.

The euro closed at Rs 72.70 for buying and Rs 72.80 for selling. It lost 20 paisas. The single European currency was trading at Rs 72.90 for buying and Rs 73.00 for selling last week.

Interbank Market: The rupee remained stable against the US currency in the interbank throughout the last week. It closed at Rs 59.62 for buying and Rs 59.67 for selling.

The euro closed at Rs 72.04 for buying and Rs 72.14 for selling, losing 56 paisas. The pound sterling closed at Rs 104.49 for buying and Rs 104.59 for selling. It shed 23 paisas against the rupee during this week. “The dollar would be stable in the interbank market in the next few days,” a treasury official said. Normal inflows of remittances and export proceeds are helping the market meet the demand by the corporate sector, he added.

According to officials, commercial banks are receiving normal inflows of $30 million to $35 million daily, while outflows are almost the same.

The central bank continues to pay oil import bills of the oil marketing companies, said another treasurer. He added that in case the State Bank of Pakistan decides to withdraw this support to the domestic currency, the rupee might again start losing value. He said the current level of the rupee against the dollar was not natural.

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