KARACHI: The rupee ended a little changed against the dollar in the interbank market on Thursday.The rupee closed at 278.06 per dollar, almost unchanged from its close at 278.07 in the previous session.
In the open market, the rupee traded at 279.36 against the dollar, compared with 279.4 on Wednesday.Analysts noted that the rupee is likely to continue showing nominal gains, bolstered by Pakistan's improved external position. The trend of the rupee strengthening remains solid. Even during the height of the Iran-US conflict, the currency showed minimal fluctuations.
With geopolitical risks easing, lower oil prices, and a significantly stronger external position for Pakistan, the local currency appears well-supported for the time being. The forward market is starting to reflect this optimism. Exporters are progressively shifting their forward bookings to longer tenors, with increasing volumes being traded in the four-six month window. Although forward premiums have improved, they are still lower than the levels observed three months ago.
