Rupee closes higher against dollar

KARACHI: The rupee ended slightly stronger against the dollar in the interbank market on Wednesday.

The rupee closed at 280.21 to the dollar, up from 280.27 in the previous session.

The rupee also edged higher in the open market, trading at 282.06 per dollar, compared with 282.07 on Tuesday.

According to dealers, the local unit was trading in narrow ranges. The currency fluctuates based on the supply and demand of dollars in the market. The rupee depreciates when the demand for dollars for imports and debt repayment exceeds the inflows from exporters and remittances. The rupee, however, gains value if supply surpasses demand.

Pakistan’s 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.

Analysts expect the country to post another current account surplus in March as the trade deficit is projected to normalise in that month and remittances are predicted to stay high.