Rupee ends higher in interbank market

KARACHI: The rupee ended a tad stronger in the interbank market on Tuesday due to healthy supplies aided by robust remittances and dollar selling from exporters.

The rupee closed at 279.17 against the dollar, up from 279.22 on Monday. Dealers said the local unit erased the losses from the previous session as dollar supplies were enough to meet importer demand. Furthermore, the rupee was supported by reports that the International Monetary Fund’s team is scheduled to visit Pakistan from March 3 to 14 to review the nation’s performance under the $7 billion loan programme.

Pakistan’s remittances from its overseas workers increased by 32 per cent to $20.8 billion in the seven months of fiscal year 2025. In January alone, money sent from abroad reached $3 billion, a 25 per cent increase, compared with the same period last year. However, remittances fell by 2.5 per cent, compared with the previous month. The inflow of remittances plays a vital role in supporting Pakistan’s external accounts and foreign exchange reserves. Currently, the SBP’s forex reserves amount to $11.42 billion, sufficient to cover over two months’ worth of imports. The rupee lost ground in the open market, trading at 281.04 per dollar, down from 280.99 in the previous session.