Rupee closes weaker

KARACHI: The rupee maintained its downward trend against the dollar for a second consecutive session in the interbank market on Friday.

The rupee closed at 280.71 per dollar, down from 280.61 in the previous session.The local unit also lost ground in the open market. It ended at 282.3 against the dollar, compared with 282.17 on Thursday.

Dealers said that the rupee continued to depreciate due to dollar demand from importers and a fall in foreign exchange reserves.The forex reserves held by the State Bank of Pakistan (SBP) decreased by $127 million to $10.57 billion during the week ended April 11 due to external debt repayments.

Analysts expect the rupee to remain stable in the near term owing to positive economic trends.“The macroeconomic outlook continues to improve, with Pakistan posting a record-high monthly current account surplus of $1.2 billion. This development significantly increases the likelihood of closing the current financial year with a surplus,” said Chase Securities in a note.

“Meanwhile, the real effective exchange rate (REER) has inched down to 101.6, keeping the currency at competitive levels. On the fiscal front, increased revenue collection through the petroleum development levy (PDL) and controlled expenditures have helped keep both the fiscal and external accounts in check,” it added.