KARACHI: The rupee ended slightly higher against the dollar in the interbank market on Monday.The rupee closed at 279.37 per dollar, up from its close at 279.4 in the previous session.
The local currency also gained modestly in the open market. It closed at 280.42 against the dollar, compared with 280.45 in the previous session.Analysts said that the rupee remained firm, although most peer currencies weakened. The Egyptian pound declined by nearly 5.0 percent, while the Indian rupee reached an all-time low of 92.58 per dollar.
“In the near term, we expect USDPKR to remain range-bound, although import premiums may edge higher,” said Tresmark in a note on Saturday.
“Over the medium term, however, the outlook depends heavily on how the conflict evolves,” it said. “A prolonged conflict could deteriorate the current account, primarily due to higher oil payments, lower remittances, and trade disruptions linked to the Pak-Afghan conflict, and force the central bank to ration fresh import LCs [letters of credit] to preserve foreign exchange liquidity.”“Tighter import controls and potentially higher interest rates would likely slow an already muted GDP growth outlook,” it added.
