Rupee inches up

Published April 23, 2008

KARACHI, April 22: The rupee inched up on Tuesday following some dollar inflows in the market but dealers said persistent demand for the US currency could mean that the rupee’s gains are short-lived.

The rupee closed at 63.98/64.03 to the dollar, up from Monday’s close of 64.05/64.10. During the day, it traded as low as 64.10 and as high as 63.70, dealers said.

“We have seen some strong inflows over the last couple of days, which have helped the rupee hold steady,” said a dealer at a foreign bank.

However, dealers said continued high dollar demand could push the rupee lower.

“There have been inflows of over $200m in the last couple of days, but the demand is so heavy that the rupee has not gained much,” said another dealer.

“I don’t think these strong inflows will continue for long, while the demand is likely to continue, and that would put pressure on the rupee,” he said.Some dealers said the demand for the dollar from importers and a lack of inflows could pull the currency down to its life-time low of 64.40 traded in September 2001 or even lower.

The rupee has already lost more than 2 per cent this month, and nearly 4 per cent this year.

In the money market, overnight call rates ended at 10.40 per cent, unchanged from Monday.—Reuters

Opinion

Editorial

China security ties
Updated 14 Nov, 2024

China security ties

If China's security concerns aren't addressed satisfactorily, it may affect bilateral ties. CT cooperation should be pursued instead of having foreign forces here.
Steep price
14 Nov, 2024

Steep price

THE Hindu Kush-Himalayan region is in big trouble. A new study unveiled at the ongoing COP29 reveals that if high...
A high-cost plan
14 Nov, 2024

A high-cost plan

THE government has approved an expensive plan for FBR in the hope of tackling its deep-seated inefficiencies. The...
United stance
Updated 13 Nov, 2024

United stance

It would've been better if the OIC-Arab League summit had announced practical measures to punish Israel.
Unscheduled visit
13 Nov, 2024

Unscheduled visit

Unusual IMF visit shows the lender will closely watch implementation of programme goals to prevent it from derailing.
Bara’s businesswomen
13 Nov, 2024

Bara’s businesswomen

Bara’s brave women have proven that with the right support, societal barriers can be overcome.