Rupee breaches 277 per dollar level in interbank market

KARACHI: The rupee lost ground, surpassing the 277 level against the dollar in the interbank market on Wednesday due to demand for dollars from importers. The rupee closed at 278.04 per dollar, a slight decline from the previous close of 277.95.

In the open market, the rupee also declined against the dollar, trading at 278.99 per dollar, compared with 278.88 on Tuesday.

The local currency continued to decline for the third consecutive day, according to dealers, as importers’ demand outpaced inflows from exporter conversions and remittances.

The current account balance recorded a surplus for the third consecutive month in October. Pakistan posted a current account surplus of $349 million in October, bringing the cumulative surplus from July to October to $218 million.

The surplus, according to analysts, shows a modest recovery in exports and an improvement in remittances, even in the face of normal import levels and minimal administrative constraints.

In addition to enhancing confidence in the nation’s economic prospects, the current account surplus plays a crucial role in maintaining inflation control and exchange rate stability.