KARACHI: The rupee was little changed against the dollar in the interbank market on Friday.The rupee closed at 278.7 per dollar, compared with the previous close of 278.71 in the previous session.However, the rupee rose slightly in the open market. It traded at 279.93 against the dollar, up from 279.98 on Thursday.
Dealers said the local currency unit remained flat due to a balance between inflows and outflows of dollars in the market. Additionally, the increase in the foreign exchange reserves supported the rupee.
The reserves held by the State Bank of Pakistan increased by $23 million to $15.851 billion during the week ending April 30. The country’s total liquid foreign reserves rose by $24 million to $21.294 billion. The reserves of commercial banks increased by just $2 million to $5.443 billion.
However, investors were concerned about the jump in oil prices amid renewed hostilities between the US and Iran.Brent crude futures gained 1.2 percent to $101.26 a barrel, while US West Texas Intermediate crude rose 0.9 percent to $95.66 a barrel.
“The rise in crude prices has once again shifted investor focus toward energy markets, with volatility expected to persist until there is greater clarity on diplomatic developments,” said Chase Securities in a note. “Encouragingly, Pakistan continues its diplomatic engagement and is reportedly seeking an early breakthrough in Iran-US peace efforts, which, if successful, could help stabilise regional sentiment and ease pressure on commodity markets,” it added.
