Rupee ends weaker against dollar

KARACHI: The rupee closed modestly lower on Monday due to escalating fears about the economic repercussions of US tariffs, which jolted global financial markets and local equities.

The rupee ended at 280.57 against the dollar in the interbank market, compared with the previous close of 280.47. In the open market, the rupee inched up, trading at 281.96 per dollar. It had settled at 281.97 in the previous session.

Dealers said the local unit saw a little decline, tracking losses in both the local and global markets and dragging Asian currencies due to concerns over US President Donald Trump’s sweeping tariff plans. Despite the uncertainty surrounding trade tensions, dealers do not anticipate a significant drop in the value of the rupee.

Meanwhile, the Pakistan Stock Exchange (PSX) reached an intraday low of 8,687 points, marking the largest intraday point drop in its history. The session concluded with a decline of 3.3 per cent, compared with the previous close.

Chase Securities said in a client note that the direct impact of the global trade tensions on Pakistan’s economy appears to be limited. Industry experts are divided on the extent of the negative implications.

“While some anticipate a potential hit of $2-3 billion to exports and remittances, others argue that this geopolitical shift could present new opportunities for Pakistan, particularly in trade diversion and increased competitiveness,” it said. Moreover, the recent sharp decline in oil and other commodity prices is expected to offset some of the negative impact,” it added.

“On the macroeconomic front, the finance minister has hinted at the possibility of further interest rate cuts, noting that substantial room remains despite already significant declines.

Given the evolving global and local dynamics, the macroeconomic environment appears stable in the near term,” it said.