Rupee holds steady ahead of MPC announcement

• Local currency closes the day at Rs177.88 with a meagre gain of 0.01%.
• MPC announces policy rate for the next month.
• Rupee hit a record low against the dollar on Monday.

KARACHI: The rupee steadied against the US dollar in the inter-bank market on Tuesday as traders looked to the State Bank of Pakistan (SBP) for clarity on the policy rate.

The Monetary Policy Committee (MPC) announced the policy rate for the next month after trading concluded, increasing it by 100 basis points to 9.75%.

The rupee closed at Rs177.88 with a meagre gain of 0.01% against the greenback compared to a close of Rs177.89 on Monday.

Speaking to Geo.tv, Alpha Beta Core CEO Khurram Schehzad said that the nominal fluctuations are normal.

“It is important for the currency to remain stable,” he added.

The rupee has maintained a downtrend for the past seven months. It has lost 16.81% (or Rs25.61) to date, compared to the 22-month high of Rs152.27 recorded on May 14.

With a fresh gain of 0.01%, the rupee has depreciated by 12.91% (or Rs20.34) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.