KARACHI, May 30: The Pakistani rupee bounced back on Tuesday from a 19-month low against the dollar a day earlier but dealers said the rupee was expected to remain volatile in the near term. The rupee closed at 60.24/26 to the dollar, up from 60.29/31 a day earlier. Monday’s closing was the weakest for the Pakistani currency since Nov 4, 2004, and was led by a sharp rise in demand for the dollar from importers amid soft supplies.

“Trade was pretty volatile today and the rupee traded as low as 60.38 and as high as 60.20 to the dollar,” said a local bank dealer.

“There was a slight panic in the market, as importers were fearing a further spike in the dollar’s value, which led to aggressive buying,” he said.

Another dealer said heavy dollar buying was likely to continue for a few more days, as importers were clearing month-end payments.—Reuters