Rupee recovers losses to end higher against dollar

KARACHI: The rupee rebounded from its mild losses in the previous session and closed higher on Thursday due to an improved supply of dollars.

The rupee ended the day at 277.79 per dollar in the interbank market, up from 277.84 on Wednesday.“Remittances and dollar sales by exporters exceeded demand from importers, which helped the rupee gain some ground,” a currency dealer said.

The rupee appreciated in the open market as well. The local currency was trading at 279.11 versus the dollar, up from 279.28 during the last trading session.According to an annual report on Pakistan’s economy issued by the central bank on Thursday, the country’s balance of payments improved with further narrowing of the current account deficit and increased net financial inflows, supported by International Monetary Fund’s $3 billion loan programme. The increase in foreign exchange reserves, accompanied by administrative actions and reforms in the exchange companies, contributed to a modest exchange rate appreciation during FY24.

The reserve build-up, combined with the introduction of exchange company reforms in September 2023, supported the PKR appreciation by 9.8 per cent between August 2023 and June 2024, the report said.“These developments also led to a substantial reduction in the kerb premium, which averaged Rs1.2 during FY24, down from an average of Rs5.2 in FY23,” it added.