KARACHI: The rupee ended marginally higher against the dollar in the interbank market on Tuesday.The rupee closed at 278.97 per dollar, compared with the previous closing level of 279.
Analysts said that the local currency posted slight gains due to reduced concerns regarding Pakistan’s external account, following Saudi Arabia’s provision of essential financial support amounting to $3 billion as a deposit and Fitch Ratings’ affirmation of Pakistan’s long-term foreign currency issuer default rating at ‘B-’ with a stable outlook.
Investor sentiment is showing early signs of stabilisation as global risk indicators turn favourable, Chase Securities said in a client note. “Oil prices have softened below the $100 a barrel mark amid renewed prospects of diplomatic engagement between the US and Iran, with markets increasingly pricing in a de-escalation scenario despite the ongoing blockade,” it said.
“This has supported a broad-based recovery across Asian equities, reflecting improved risk appetite and easing concerns around imported inflation for oil-dependent economies such as Pakistan,” it added.
The external account outlook appears relatively cushioned with Saudi Arabia committing a fresh $3 billion deposit, while Pakistan remains engaged in discussions with Saudi Arabia and China following the UAE’s loan-related developments, according to the note. “These inflows are likely to support FX reserves stability and keep near-term currency pressures contained.”
