KARACHI: The Pakistani rupee ended nearly flat against the dollar in the interbank market on Wednesday.
The rupee closed at 279.21 per dollar, nearly unchanged from its close of 279.22 in the previous session.In the open market, the local unit remained stable. It ended at 280.27 against the dollar, unchanged from the previous close.
The equilibrium between dollar demand and supply, along with positive sentiment, contributed to the stability of the local currency.The US–Iran conflict showed early signs of de-escalation, with both sides acknowledging ongoing negotiations reportedly being hosted by Pakistan and centred around a potential one-month ceasefire, said Chase Securities in a note. This development helped cool off oil prices from recent highs.
“The easing in crude prices is particularly relevant for Pakistan, as it reduces immediate pressure on the external account and inflation outlook, thereby providing some breathing space to policymakers and improving overall risk appetite in local equities,” the note said.
“On the domestic front, activity in the secondary fixed income market remained cautious, with yields continuing to inch up as the one-year T-bill trades near the 12 per cent mark,” it added. “This reflects lingering concerns around a potential rate hike in case oil prices remain elevated. However, a successful continuation of geopolitical negotiations could reverse this trend sharply, bringing down oil prices and easing pressure on interest rates,” it added. “Meanwhile, discussions with the IMF remain in focus, with indications that reviews are progressing in light of evolving regional dynamics, which may further support sentiment.”
