Rupee drops to 280.27 per dollar in interbank market

KARACHI: The rupee marginally fell on Tuesday, despite a moderation in the current account deficit amid healthy remittances. The rupee decreased 0.04 per cent, or 10 paisas, to 280.27 against the dollar in the interbank market.

The local currency also weakened in the open market, trading at 282.07, down from 281.98 in the previous session. Dealers said the rupee declined as dollar demand from importers surpassed inflows from exporter conversions and remittances flows. In addition, the market did not react positively to an improvement in the current account balance.

Data from the State Bank of Pakistan showed on Monday that the current account deficit narrowed to $12 million in February, down from $399 million in the previous month. However, the country posted a current account surplus of $691 million in the eight months of the fiscal year 2025, compared with a deficit of $1.7 billion during the same period last year.

According to a note from Chase Securities, the monthly deficit remains manageable. The real effective exchange rate (REER) also dropped to 102.3 in February from 104.1 in the previous month, signalling improved external competitiveness.