KARACHI: The rupee ended slightly stronger against the dollar in the interbank market on Tuesday.The rupee closed at 279.22 per dollar, marginally up from its close at 279.25 in the previous session.Dealers said that the local currency continued to appreciate gradually after the long weekend. The financial markets were closed from Friday to Monday due to Eidul Fitr holidays.
Dealers expect the rupee to trade within narrow ranges in the coming sessions due to strong inflows, particularly from remittances. However, they will monitor global oil prices amid ongoing geopolitical tensions.
After weeks of escalating geopolitical tensions and sustained attacks across the Middle East, markets finally found some relief as credible reports emerged of ongoing negotiations mediated by key regional players,” said Chase Securities in a note. “This development triggered a positive response across global equity markets, while oil prices witnessed a sharp decline from recent highs,” it said.
“Speculation that Pakistan may host or play a role in these negotiations has also brought the country into the global spotlight, potentially enhancing its geopolitical relevance and investor perception in the near term.”
The government has limited fiscal space to continue absorbing elevated international oil prices, and any eventual pass-through to consumers could reignite inflationary pressures, impacting interest rates and overall economic stability, according to Chase Securities. “While global commodity volatility and recent inflationary trends continue to pose risks, the broader international push toward de-escalation suggests that policymakers worldwide are aligned toward stabilising economic conditions.”
