KARACHI: The rupee ended little changed against the dollar on Wednesday, as matching demand and supply of the greenback kept the currency broadly stable.
In the interbank market, the rupee closed at 277.45 per dollar, compared with its previous close of 277.46.Traders expect the local currency to remain range-bound in the coming sessions, with geopolitical developments and economic news flow in Pakistan likely to remain in focus as markets assess the currency’s direction.
Chase Securities said in a note that global markets are likely to remain cautious following an escalation in the US-Iran conflict, with the latest US airstrikes on Iran followed by retaliatory attacks on US assets across Jordan, Bahrain and Iraq.
“The renewed tensions have raised concerns over a prolonged disruption to energy supplies, particularly as Iran has effectively restricted shipping through the Strait of Hormuz. Brent crude surged by more than $4 a barrel on Tuesday to a five-week high,” it said.
“Pakistan’s improved sovereign credit profile and plans to launch a $2 billion Eurobond with five- and 10-year tenors could provide support to investor sentiment by improving external financing visibility and strengthening the country’s reserve position,” it added.
