Rupee posts losses for second straight day

KARACHI: The rupee extended losses for a second consecutive session, pressured by dollar demand from importers. The rupee ended at 278.16 per dollar in the interbank market, compared with Tuesday’s closing price of 278.05.

The value of the local currency also dropped in the open market, falling from 279.03 in the previous session to 279.11 per dollar. Dealers said the rupee lost ground due to the dollar demand from importers. However, inflows from export conversions were inadequate to meet the market demand. Despite this, dealers expect the rupee to stay stable in the days ahead, supported by a persistent rise in foreign exchange reserves.

As of November, the foreign exchange reserves held by the SBP stood at $12 billion -- sufficient to cover more than two months of imports. Pakistan’s remittances from its overseas workers jumped to $14.8 billion in the five months of the fiscal year 2025, a 33.6 per cent increase from a year earlier.

In November, money sent back home by Pakistani migrants rose by 29.1 per cent year-on-year, totalling $2.9 billion. However, these inflows decreased by 5.0 per cent month-on-month. Remittances have averaged $2.9 billion per month so far.