Rupee slips against dollar

KARACHI: The Pakistani rupee weakened further against the US dollar in the interbank market on Wednesday.The rupee closed at 281.97 per dollar, down 0.02 per cent from the previous session.

In the open market, the rupee edged down, selling at 284 versus the dollar, compared with 283.99 on Tuesday.Dealers said the local currency declined for a third consecutive session due to dollar demand for import payments. Dollar sales from exporters and remittances did not provide enough inflows to meet market demand.

Dealers expect the rupee to remain range-bound until greater clarity emerges about the fiscal year 2026 federal budget, which will be presented early next month. According to the National Accounts Committee, the economy grew 2.4 per cent in the third quarter of the fiscal year that ends in June. The committee revised up growth prospects for the current fiscal year. It approved a projection of 2.68 per cent provisional growth in GDP during FY2024-25, taking the size of the economy to $410.96 billion.

Reports indicate that Pakistan is pursuing loans up to $350 million from commercial banks in the United Arab Emirates (UAE) to meet its external financing requirements. The government has budgeted $3.8 billion in financing from foreign banks for the current fiscal year; however, actual disbursement has been sluggish in the first nine months.