KARACHI: The rupee gave up losses to end slightly stronger against the dollar in the interbank market on Thursday. The rupee closed at 279.82 per dollar, up from 279.87 in the previous session. However, the rupee held steady in the open market. It ended at 281.3 against the dollar, unchanged from the previous close.

As inflows from exporter conversions and remittances outpaced importers’ demand, dealers reported that the local unit recovered from the losses of the previous two sessions. Analysts said the traders are closely watching the ongoing review of a $7 billion loan programme from the International Monetary Fund (IMF) and the upcoming central bank policy review meeting to determine the future direction of the rupee.

“In yesterday’s auction, T-bill yields remained unchanged despite lower-than-expected inflation figures. Market participants remain cautious due to the ongoing IMF review and expectations that the State Bank of Pakistan (SBP) may adopt a prudent approach in its monetary policy stance,” Chase Securities in a note.

“However, the continued decline in international commodity prices — particularly oil — places Pakistan in a favourable position by easing external account pressures and supporting lower inflation in the coming months,” it added.