Rupee edges lower against dollar

KARACHI: The Pakistani rupee was little changed against the US dollar in the interbank market on Friday.The rupee closed at 278.05 per dollar, compared with its close at 278.04 on Thursday.

The local currency edged lower in the open market, closing at 279.07 to the US dollar, down from 279.06 in the previous session.According to dealers, the rupee’s gains were restrained and its value relative to the dollar remained steady due to the importers’ ongoing dollar demand.

Dealers expect the rupee to stay stable in the coming weeks aided by positive sentiment regarding Pakistan’s economy after the State Bank of Pakistan received $500 million from Asian Development Bank (ADB) as proceeds of a loan to support the government’s Climate Change and Disaster Resilience Enhancement Programme. The ADB inflows will support the country’s balance of payments, boosting the SBP’s forex reserves to around $12 billion. As of November 22, the SBP’s reserves stood at $11.42 billion -- enough to cover more than two months of imports.

The government anticipates that worker remittances, imports and exports will all continue their upward trend. The November 2024 monthly economic update and outlook predicts that the exports will remain within a range of $2.5-3 billion, imports $4.5-4.9 billion and workers’ remittances $ 2.8-3.3 billion in November 2024.