KARACHI: The rupee edged higher against the dollar in the interbank market on Monday.The rupee closed at 278.17 per dollar, slightly up from its close at 278.2 on Wednesday.However, the rupee fell marginally in the open market. It traded at 279.59 against the dollar, down from 279.5 in the previous session.
The financial markets were closed from Thursday to Friday for Ashura (Muharram) holidays. Dealers said the local currency gained ground as dollar sales from exporters and remittance inflows exceeded the month-end importer greenback demand. Furthermore, a decline in oil prices also boosted market investment.
The geopolitical tensions in the Middle East continue to ease following reports that the US and Iran have agreed to halt hostilities and resume diplomatic engagement this week, said Chase Securities in a client note.
“With international crude oil prices remaining subdued in the $70-72 a barrel range,” it said.“While the government has maintained domestic petroleum prices unchanged, it has increased the petroleum levy on petrol and high-speed diesel, allowing it to capture the benefit of lower global oil prices and partially bridge the fiscal revenue gap,” it added.
