Rupee extends losses versus dollar

KARACHI: The rupee posted more losses against the dollar in the interbank market on Wednesday.The rupee closed at 278.72 per dollar, compared with the previous close of 278.67.

According to dealers, the local currency declined for the third straight day as the rupee was somewhat pressured by the rising dollar demand from importers and companies.In the open market, the rupee also declined, closing at 280.24 against the dollar, down from 280.07 the day before. Due to strong remittances and stable foreign exchange reserves, dealers predict that the rupee will continue to move in a range-bound manner in the coming sessions.

Prime Minister Shehbaz Sharif recently reiterated his optimism about the country’s economic recovery trajectory and confirmed the UAE’s rollover of a $2 billion loan.The rupee increased by 1.0 per cent in 2024, compared with a depreciation of 24 per cent in the previous year. This success can be attributed to various measures, including strong actions against the grey and black markets to discourage speculation, restricting growth and imports to control foreign exchange outflows, and making decisive moves to secure a new IMF loan programme. High real interest rates were maintained to enhance the rupee’s attractiveness for investment and to combat inflation.

The State Bank of Pakistan (SBP) played a proactive role in implementing these initiatives, particularly in boosting remittances, which contributed to a current account surplus.