Rupee recoups losses against dollar

KARACHI: The rupee recovered its losses from earlier sessions to end stronger on Friday due to soft dollar demand from importers. The rupee closed at 278.56 against the dollar in the interbank market, up from 278.64 in the previous session. Dealers said the local currency strengthened after four straight sessions of losses owing to a decrease in dollar demand from importers and businesses.

However, the rupee did decline in the open market, trading at 279.85 to the dollar, down from 279.7 on Thursday. Pakistan’s foreign exchange reserves held by the central bank fell by $143 million to $11.710 billion as of December 27 due to external debt repayments. However, the country’s forex reserves increased by $37 million to $16.409 billion. The reserves of commercial banks also rose by $180 million to $4.698 billion.

According to the Exchange Companies Association of Pakistan (ECAP), the exchange businesses handled a total volume of approximately $7 billion in 2024. These firms provided $3.85 billion to the interbank market to help bolster the country’s foreign reserves. Moreover, $3.15 billion was dealt in the open market to support international travel, including Haj and Umrah pilgrimages, payment of overseas university fees, family assistance and medical treatments abroad.