Rupee ends higher against dollar on current account surplus

KARACHI: The rupee ends slightly stronger against the dollar on Wednesday thanks to healthy supplies and a persistent current account surplus.The rupee closed at 278.22 per dollar in the interbank market, up from 278.27 in the previous session.

Dealers said that the local unit gained a little ground due to a better supply of dollars, while ongoing improvements in Pakistan’s external account sparked optimism surrounding the country’s economy. Pakistan reported a $729 million current account surplus in November. This contrasts with a $148 million deficit in November 2023 and a $346 million surplus in the prior month, according to data from the central bank on Tuesday.

November was the fourth consecutive month of surplus. The country posted a current account surplus of $944 million in the first five months of the current fiscal year, compared with a shortfall of $1.67 billion over the same period last year.

The State Bank of Pakistan forecasts the current account deficit to fall within the lower bound of the projected 0-1 per cent of GDP for FY25.The real effective exchange rate rose by 2.12 per cent month-on-month to 102.92 in November.