KARACHI: The rupee closed slightly higher against the dollar in the interbank market on Wednesday.The rupee ended at 278.07 per dollar, 0.01 per cent up from its close at 278.1 in the previous session.
The rupee closed unchanged at 279.4 against the dollar in the open market.Dealers said the local currency gained marginally as dollar sales from exporters and remittances surpassed importer demand. However, they monitor developments regarding the renewed tensions in the Middle East to gauge the outlook for the rupee.
On Tuesday, the US launched fresh strikes against Iran in response to attacks on commercial vessels in the Strait of Hormuz, while simultaneously revoking the general license that permitted the sale of Iranian oil.
The renewed tensions pushed Brent crude above $76 per barrel amid concerns over potential supply disruptions. “While geopolitical headlines may keep investors cautious in the near term, recent events suggest that both Washington and Tehran have repeatedly returned to the negotiating table following periods of escalation,” said Chase Securities in a note. “Consequently, the impact on global oil prices has remained relatively contained, reducing the likelihood of a prolonged energy shock for Pakistan,” it added.
