KARACHI: The rupee edged higher against the dollar in both currency markets on Monday.The rupee closed at 279.07 per dollar in the interbank market, slightly up from its close at 279.1 in the previous session.
The rupee also gained ground in the open market. It traded at 280.13 against the dollar, compared with 280.18 in the previous session.Dealers and analysts expect the local currency to remain stable in the coming sessions, but they assess whether the local currency can sustain this trend as the country prepares to repay two significant external loans this month. The government plans to repay a total of $3.5 billion in external loans this month. This includes a repayment of $2 billion to the United Arab Emirates (UAE), due on April 17, and $1.3 billion upon the maturity of a Eurobond on April 8.
Chase Securities said in a client note that persistent geopolitical tensions continue to keep global and local markets on edge, with elevated oil prices adding to inflationary pressures across the board.
“The macro backdrop remains noisy, as Pakistan navigates rising inflation expectations, potential pressure on foreign exchange reserves following upcoming Eurobond and UAE-related repayments, and a likely uptick in interest rates in the upcoming monetary policy,” it said.“This combination of external vulnerabilities and tightening financial conditions is expected to keep investor sentiment cautious in the near term,” it added.
