KARACHI: The rupee continued to trade within a narrow range against the dollar in the interbank market on Tuesday.The rupee ended at 277.76 against the dollar, little changed from its close of 277.77 in the previous session.
Dealers said the local currency maintained its range-bound trading pattern due to a balance between inflows and outflows caused by improving foreign exchange reserves. Moreover, the ease in global oil prices amid improving geopolitical sentiment and expectations of successful negotiations between the US and Iran continued to support investor confidence.
International oil prices softened further, easing concerns over inflation and Pakistan’s external account, said Chase Securities in a note. “Adding to the optimism, Pakistan’s July 2026 CPI [consumer price index] inflation came in at 9.2 per cent, well below market expectations despite the sharp rise in oil prices during the month, reaffirming that inflation has largely remained on a single-digit trajectory,” it added.
“While inflation is expected to remain elevated in August, potentially in the high single-digit to low double-digit range due to the lagged impact of higher energy prices, the outlook beyond September appears considerably more favourable, provided international oil prices remain below the $100 a barrel mark,” it said. “A sustained decline in oil prices would strengthen the case for inflation returning to single digits, improving the macroeconomic outlook and reviving expectations of monetary easing over the medium term.”
