Rupee weakens for sixth day

KARACHI: The rupee extended losses for the fifth consecutive session in the interbank market on Friday.The rupee closed at 281.7 per dollar, compared with the previous close of 281.51.

The rupee also fell in the open market, trading at 283.36 per dollar, compared with 283.24 in the previous session.Dealers said the local unit remained under pressure, despite optimism over the International Monetary Fund’s executive board approval for the release of a $1 billion tranche to Pakistan as a part of its $7 billion loan programme.

According to dealers, the increased dollar demand from importers and ongoing tensions with India continued to weigh on the rupee.Data from the State Bank of Pakistan (SBP) showed that remittances to Pakistan from its workers employed abroad increased 13 per cent year-on-year to $3.2 billion in April. However, remittance inflows decreased by 22 per cent on a month-on-month basis. Remittances increased 31 per cent to $31.2 billion in the July-April fiscal year 2025.

Pakistan’s central bank’s foreign exchange reserves rose by $118 million to $10.332 billion in the week ended May 2. The total liquid foreign reserves held by the country increased by $231 million to $15.483 billion. The reserves of commercial banks also rose by $113 million to $5.15 billion.