Rupee ends slightly higher against dollar

KARACHI: The rupee closed marginally stronger against the US dollar in both currency markets on Friday.The rupee closed at 278.5 per dollar in the interbank market, a little higher than its previous finish of 278.64.

In the open market, the rupee also saw a minor uptick. It was trading at 280.41 against the US dollar, up from 280.49 on Thursday.According to dealers, the market’s ample dollar liquidity and the optimistic outlook surrounding prospects of a current account surplus for July are the reasons behind the local unit’s steady climb. The rupee was further strengthened by a minor increase in foreign exchange reserves.

The Pakistan Bureau of Statistics showed the country’s trade balance data on Thursday, which showed a trade deficit of $1.948 billion for July.“With remittances ranging between $2.5 billion and $3 billion over the past few months, the first month of FY25 could potentially start with a current account surplus,” said Chase Securities in a note. “Additionally, the consumer price index (CPI) for July, released yesterday, stood at 11.1 per cent. This figure was within expectations and significantly lower than the current policy rate, thus widening real interest rates,” it added.