Rupee rises against dollar

KARACHI: The rupee posted more gains against the dollar in the interbank market on Friday.The rupee closed at 280.16 per dollar, compared with the previous closing value of 280.21.In the open market, the rupee also rose, trading at 281.85 against the dollar. It traded at 281.94 on Wednesday.

Dealers said the local unit continued to rise due to remittances tied to Eidul Fitr.Pakistan’s central bank’s foreign exchange reserves dropped by $540 million to $10.61 billion during the week ending March 21 due to external debt repayments.

The total liquid foreign reserves held by the country also decreased by $465 million to $15.551 billion. However, the reserves of commercial banks rose by $75 million to $4.944 billion.

The SBP’s reserves stabilised at $11 billion, attributed to the improvement in the current account balance bolstered by remittances and dollar purchases from currency markets. However, despite continued dollar buying, the latest decline in reserves shows outflows like external debt repayments. The SBP purchased $5.52 billion from the interbank market between June and December 2024 to bolster its reserves and meet debt obligations.