Rupee ends lower against dollar

KARACHI: The Pakistani rupee closed weaker against the US dollar in the interbank market on Monday.

The rupee ended at 277.86 per dollar, compared with the previous closing value of 277.73.Dealers stated that an uptick in dollar demand from importers caused the value of the local currency to decline. The rupee also lost ground in the open market. It was trading at 278.77 to the dollar, up from 278.74 in the previous session.

According to dealers, the rupee seems to remain stable in the coming sessions due to a steady increase in remittances and foreign exchange reserves. However, the market participants will monitor the International Monetary Fund’s (IMF) team talks with Pakistani authorities to assess the country’s progress on its $7 billion bailout package.On November 11 (Tuesday), an IMF team is scheduled to arrive, with the main agenda being to review Pakistan’s external financing gap and efforts to close the tax collection shortfall. According to media reports, Pakistan has requested to reschedule $3.4 billion in debt from China. This rollover is expected to provide short-term relief to Pakistan’s external account pressures.

“On the economic front, several positive indicators have emerged. Remittances have shown robust growth, the trade deficit remains in check, and the current account is projected to be marginally positive,” it said.“Additionally, the SBP governor said that the central bank’s foreign exchange reserves are expected to reach $12 billion by the end of November,” it added.