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KARACHI: The rupee ended almost flat against the dollar in the interbank market on Monday.The rupee closed at 277.31 per dollar, compared with the previous closing level of 277.32.
Dealers said the local currency remained stable, supported by balanced dollar inflows and outflows amid improving foreign exchange reserves, as markets awaited the State Bank of Pakistan’s interest rate decision later in the day.
Analysts said regional tensions remained a key macroeconomic overhang, with efforts to de-escalate the Gulf conflict continuing after a proposed meeting between Gulf states and Iran in Oman was postponed. Pakistan has assured Saudi Arabia it will continue diplomatic efforts to ease tensions.
The prolonged conflict has kept fuel prices elevated and added uncertainty to inflation outlook, monetary policy and the external account, said Chase Securities in a note.The SBP later kept its key policy rate unchanged at 11.5 per cent, in line with market expectations, citing an uncertain inflation outlook amid the ongoing Middle East conflict.
