KARACHI: The rupee closed nearly unchanged on Wednesday amid a decline in oil prices following the US-Iran ceasefire, and Pakistan paid back a $1.3 billion Eurobond. The rupee ended at 279.05 against the dollar, after closing at 279.06 in the previous session on Monday.
Dealers said the local currency remained traded in narrow ranges and gained only one paisa against the dollar despite easing uncertainty over the Middle East conflict. This shows that market players are concerned about the pressure on Pakistan’s external account, as Islamabad will repay a $3.5 billion loan to the United Arab Emirates this month.
Pakistan has successfully repaid its $1.3 billion Eurobond, which was due on April 8. Additionally, the country has fulfilled its $126.125 million coupon obligations on other Eurobond issuances. In total, the debt payments amounted to $1.43 billion.
Analysts expect the rupee to remain range-bound in the short run due to the stable position of the foreign exchange reserves. In addition, the central bank may take administrative measures to manage FX reserves and balance of payments based on past practices.
