Rupee ends weaker

KARACHI: The Pakistani rupee ended lower against the US dollar in the interbank market on Monday.

The rupee closed at 281.22 per dollar, compared with the previous close of 281.05.In the open market, the rupee remained flat at 282.9 against the dollar.

Dealers said the increased dollar demand from importers put pressure on the local unit during the session. The supplies from exporters’ dollar conversions were not sufficient to meet that demand.

The State Bank of Pakistan (SBP) cut its key interest rate by 100 basis points (bps) to 11 per cent on Monday.

The SBP said that on the back of the expected realisation of planned official inflows, the Monetary Policy Committee (MPC) expects the SBP’s FX reserves to rise to $14 billion by June 2025.

“Going forward, the MPC expects this build-up in FX reserves to continue in FY26, based on a moderate current account deficit and improved financial inflows. At the same time, the MPC cautioned that this outlook is subject to risks, particularly those emanating from the uncertain global economic and trade environment,” it said.

The SBP’s foreign exchange reserves increased by $9 million to $10.214 billion in the week ended April 25. However, the total liquid foreign reserves held by the country dropped by $184 million to $15.252 billion. The reserves of commercial banks also fell by $193 million to $5.037 billion.