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Rupee ends slightly weaker against dollar

Our Correspondent
Tuesday, May 21, 2024

KARACHI: The rupee closed marginally lower against the US dollar in both currency markets on Monday.In the interbank market, the rupee ended at 278.29 to the dollar, compared with Friday’s close of 278.20.

The currency also lost ground in the open market. It was trading at 279.54 per dollar, down from 279.50 in the previous session.As the demand for dollars often increases at the beginning of the week, dealers said that the rupee marginally dropped.

“The rupee depreciated slightly vs the dollar due to the lacklustre exporter and remittance inflows notwithstanding the existence of importer demand,” said a currency dealer.Premiums for one, two, and three months (360/280, 650/580, and 920/825) have decreased due to exporters' forward booking and some factoring in future rate cuts.

Because of all the good news, analysts said, the rupee appears to stay stable in the upcoming sessions, according to analysts.As of May 10, Pakistan's foreign exchange reserves have climbed by $168 million to $14.5 billion, continuing their rising trend.

The real effective exchange rate consolidated from 104.1 to 104.5.Between July and April of FY24, the current account deficit decreased to $202 million, with a $491 million surplus in April. Islamabad started talks with the International Monetary Fund for a new loan programme.