KARACHI: The rupee remained stable against the U.S. dollar, despite pressure from upcoming external debt repayments and rising foreign exchange demand from multinational companies.
In the interbank market, the dollar initially faced downward pressure and at one point slipped by 20 paisas to Rs281.25. However, increased demand for foreign currency – primarily from foreign companies remitting profits to their headquarters – reversed the trend, and the dollar eventually closed unchanged at Rs281.45.
Similarly, in the open currency market, the greenback also settled without change at Rs282.50.
Currency dealers noted that concerns over flood-related economic losses and the upcoming $500 million Eurobond payment due by September 30 have added pressure on Pakistan’s external accounts.
However, expectations of increased Saudi investment and remittances, following the landmark strategic defense agreement with Saudi Arabia, along with prudent economic management by the government, have helped keep market sentiment stable.
Market observers believe that with improving fundamentals and a gradual easing of external financing concerns, the rupee still holds potential for further appreciation in the coming weeks.
