Rupee falls for third day

KARACHI: The rupee weakened for the third consecutive session on Tuesday, hurt by increased demand for the greenback from importers, dealers said.

In the interbank market, the rupee closed at 281.37 per dollar, 0.05 per cent, or 15 paisas lower than the previous close of 281.22.

The rupee declined further in the open market, trading at 283.12 against the dollar, compared with 282.9 in the previous session.

“Continued importer demand for dollars put pressure on the local unit. The inflows from exporters’ dollar selling were insufficient to meet that demand,” a currency dealer said.

The central bank’s officials told analysts in a briefing following the rate cut decision on Monday that import volumes have increased, signalling an economic recovery. However, a decline in global oil prices has kept the overall import bill manageable, in line with the SBP’s projections.

Remittances reached a record high in March, increasing to $4.1 billion. The SBP expects these inflows to hit approximately $38 billion for the entire fiscal year 2025. According to the SBP, the quality of foreign exchange reserves is improving, as forward liabilities have been significantly reduced, enhancing reserve sustainability. Ongoing SBP interventions have contributed to the buildup of the country’s foreign exchange reserves.