KARACHI, April 10: The rupee edged up on Thursday after falling to a 6-1/2-year low a day earlier and dealers said higher demand from importers, particularly for oil payments, could keep the local unit range-bound for now.
The rupee closed at 63.15/20 to the US dollar, compared with Wednesday’s close of 63.20/24, which was its weakest closing since September 2001.
“There has been some aggressive dollar buying by importers, mostly for oil payments, in recent days, which has kept the rupee under pressure,” said one dealer at a local bank.
Another dealer said that the higher dollar demand could keep the rupee under downward pressure for the next several days.
“But we don’t see the rupee falling much further from here, as dollar inflows are healthy. Though it could hover around the current levels near-term,” he said.
Central bank data showed remittances sent home by overseas
Pakistanis rose 21 per cent to $4.13 billion in the first eight months of 2007-08, against the same period last year.
In the money market, overnight rates closed at 10.40 per cent, up from 9.75 per cent a day earlier, and dealers said there may be some discounting on Friday.
“There were outflows of about Rs38 billion for the settlement of yesterday’s Treasury bills auction, but the impact was offset due to inflows of a similar amount,” said a brokerage house dealer.
“But today’s high closing levels suggest that there may be some discounting tomorrow,” he said.—Reuters
