KARACHI: The Pakistani rupee ended slightly higher against the US dollar on Tuesday.The rupee closed at 280.07 in the interbank market, marginally up from its close at 280.1 in the previous session.
The local currency unit also posted slight gains in the open market. It finished at 281.1 against the dollar, compared with 281.15 on Monday.Analysts expect the rupee to remain strong against the US dollar this year, supported by a well-managed external account position, resilient remittances, and rising IT exports amid tight monetary and fiscal policies.
Stability in the Pakistani rupee has translated into a reduction in inflation, which is expected to remain in the single digit, according to a report from AKD Securities Limited. “We foresee the Pakistani rupee to devalue at an inflation differential given the building up of FX reserves, improved external account, tight monetary policy, and prudent fiscal approach amid a focus on reforms to address structural issues,” it said. “Continued efforts to curb smuggling, along with a focus on preferential trade agreements, would also support stability,” it added.
