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Rupee rebounds; REER hits highest since 2018

Our Correspondent
Saturday, May 18, 2024

KARACHI: The rupee recovered all of its losses from the previous session to close higher in the interbank market on Friday.The rupee ended at 278.20 to the US dollar, up from Thursday’s close of 278.40.

In the open market, the rupee also gained ground. It was trading at 279.50 per dollar, compared with 279.54 in the previous session.Dealers said the local unit slightly appreciated due to healthy supplies supported by dollar sales from exporters. The supplies were sufficient to meet the importer demand, they added.

The increase in the foreign exchange reserves also supported the rupee, according to dealers.Data from the State Bank of Pakistan showed on Thursday that the country’s foreign exchange reserves held by the central bank increased by $15 million to $9.136 billion in the week ending May 10.

The SBP reported on Friday that the real effective exchange rate (REER) clocked in at 104.5 in April, the highest since September 2018. The REER was 104.1 in the previous month.