KARACHI: The Pakistani rupee was little changed against the dollar in the interbank market on Wednesday.
The rupee closed at 278.96 per dollar, inching up from its close of 278.97 in the previous session.In the open market, the rupee remained flat at 280 against the dollar.Analysts said that the local currency remained stable due to an improved supply of dollars in the market. Additionally, reports indicating that Saudi Arabia will provide $3 billion in additional support for Pakistan, aimed at helping the country address a multi-billion dollar financial gap related to an upcoming debt repayment to the United Arab Emirates, boosted investor sentiment.
Chase Securities said in a note that the external account outlook appears relatively cushioned with Saudi Arabia committing a fresh $3 billion deposit. At the same time, Pakistan remains engaged in discussions with Saudi Arabia and China following the UAE’s loan-related developments. “These inflows are likely to support FX reserves stability and keep near-term currency pressures contained,” it said.
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 added. This has eased concerns around imported inflation for oil-dependent economies such as Pakistan.
