KARACHI: The rupee closed at 277.75 per dollar, largely unchanged from its close of 277.76 in the previous session continuing a long-running stable trend against the dollar in the interbank market on Wednesday.
However, the local currency gained marginally in the open market. It traded at 279.68 against the dollar, compared with 279.74 on Tuesday.Dealers said a balance between dollar inflows and outflows in the market kept the rupee stable. Additionally, the improving sentiment following the decline in global energy prices supported the local unit.
According to reports, a breakthrough in negotiations could soon lead to the reopening of the Strait of Hormuz. “Mediators from Pakistan and Qatar are reportedly preparing the draft language for a formal announcement, signaling progress toward easing regional tensions,” said Chase Securities in a note.
“De-escalation in the Middle East would significantly reduce geopolitical risk, providing relief to global financial markets and restoring confidence across emerging markets, including Pakistan,” it added.
“The positive developments have already been reflected in the energy market, with international oil prices retreating below the $80 per barrel mark,” it said. “Lower oil prices are a key positive for Pakistan’s economy as they ease pressure on the external account, help contain inflation, and strengthen the case for a more accommodative monetary policy in the months ahead.”
