Rupee weakens for second straight session

KARACHI: The rupee extended losses for a second consecutive session against the dollar in the interbank market on Tuesday.

The rupee closed at 278.67 per dollar, down from 278.62 in the previous session.In the open market, the rupee closed at 280.07 versus the dollar, compared with the previous closing rate of 280. Per traders, the local currency persisted in its gradual depreciation owing to importers’ demand for dollars.

The most recent figures from the Pakistan Bureau of Statistics (PBS) showed that the nation’s imports reached $5.285 billion in December, up 17.44 per cent month over month and 14 per cent year over year. Exports, meanwhile, stayed basically steady in December, rising 0.28 per cent MoM and 0.67 per cent YoY to $2.841 billion.

Pakistan’s central bank bought a record $9 billion from the local market last year to stabilise foreign exchange reserves, according to reports that cited State Bank of Pakistan Governor Jameel Ahmad’s briefing before the Senate Standing Committee on Finance. According to the governor, more than $4.5 billion of the $9 billion was purchased between July and December 2024. He noted that the exchange rate was stable because the dollar supply exceeded the demand.