Rupee drops to 278.56/dollar in interbank market

KARACHI: The rupee maintained its downward trend, closing weaker against the dollar in the interbank market on Monday.

The rupee finished at 278.56 to the dollar, down from 278.41 in the previous session. Dealers said the demand for dollars required for debt servicing, year-end import payments and other commitments was the reason behind the local unit’s ongoing slide. The rupee was under pressure from the higher demand and the weaker dollar sales by exporters.

In the open market, the rupee also fell, closing at 279.59 to the dollar, down from 279.42 the day before. Dealers anticipate that the local currency will remain under pressure this week. But it will start to recover at the beginning of next year.

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. 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 country’s foreign exchange reserves held by the State Bank of Pakistan (SBP) rose by $31 million to $12.081 billion as of December 13.