Rupee falls for second straight day

KARACHI: The Pakistani rupee declined against the US dollar for the second straight session in the interbank market on Tuesday. The rupee closed at 282.17 per dollar, compared with the previous close of 282.06.

The rupee also weakened in the open market, tracking a decline in the local currency’s value in the interbank market. Dealers said the rupee remained under pressure as importers and companies bought dollars to meet their obligations ahead of a public holiday.

The financial markets will remain closed on Wednesday for the Youm-e-Takbeer holiday. Dealers expect the local unit to trade range-bound against the dollar until the budget is unveiled. The evolving news flow surrounding the budget will determine the rupee’s future direction.

Reports indicate, citing the finance ministry, that the presentation of the federal budget for 2025-26 has been delayed from June 2 to June 10 due to disagreements with the International Monetary Fund (IMF) about key budgetary figures, including subsidy allocations.

A report published by Arif Habib Limited last week said that the upcoming budget is expected to emphasise fiscal discipline and reforms aimed at stabilising the economy while providing targeted relief. Pakistan’s gross domestic product growth is anticipated at 3.6 per cent in FY26 (up from 2.68 per cent), inflation is expected to increase to 6.29 per cent (from 4.63 per cent), and the current account deficit is projected at $1.5 billion (from a surplus of $1.6 billion).