Rupee falls against dollar

KARACHI: The rupee ended slightly weaker against the dollar in the interbank market on Tuesday.The rupee closed at 278.05 to the dollar, compared with the previous closing price of 277.97.

The value of the local currency also declined in the open market, falling from 278.95 on Monday to 279.03 per dollar. According to dealers, the rupee consistently follows a range-bound trading pattern that is driven by the market’s supply and demand for dollars.Dealers expect the rupee to stay stable in the days ahead due to adequate dollar liquidity available in the market supported by healthy remittances.

Pakistan’s remittances from its overseas workers jumped to $14.8 billion in the five months of the fiscal year 2025, a 33.6 percent increase from a year earlier.In November, money sent back home by Pakistani migrants rose by 29.1 per cent year-on-year, totalling $2.9 billion. However, these inflows decreased by 5.0 per cent month-on-month. Remittances have averaged $2.9 billion per month so far. Remittances from the diaspora are a crucial source of external financing for Pakistan. They help enhance foreign exchange reserves and support the balance of payments. During the first four months of the fiscal year 2025, the current account recorded a surplus of $218 million, a significant improvement compared to a deficit of $1.528 billion in the same period the previous year. As of November, the foreign exchange reserves held by the SBP stood at $12 billion -- sufficient to cover more than two months of imports.