KARACHI: In the lead-up to the Eid holiday break, the rupee displayed resilience, staying steady against the US dollar in Tuesday’s interbank trading. According to the State Bank, the dollar closed at Rs277.94 on Tuesday compared to Rs277.95 the previous day. Over the past three months, the rupee has appreciated by around Rs3 against the dollar, signalling a period of stability and incremental growth in the local currency’s performance. While this exchange rate stability did not directly spur foreign direct investment, March witnessed a significant uptick in domestic bond inflows. The SBP’s data reveals an inflow of $89 million into treasury bills during March, the highest monthly inflow during the current fiscal year. The figure also outpaced equity inflows, which stood at $26.4m, even as the stock market experienced notable volumes. Currency experts say the current boom in the equity market is mainly due to stability in the exchange rate, but the treasury bills proved more attractive for foreign investors. The gradual appreciation of the rupee against the dollar supported the exchange rate, but exporters were perturbed by this situation. Some bankers say the rupee may appreciate more rapidly if the local currency sets it free, but the government and the State Bank are trying to manage the exchange rate in favour of exporters. Exporters express concern over the potential for decreased earnings due to the dollar’s devaluation, with forward booking premiums dropping significantly. News Desk
