Rupee falls for second day

KARACHI: The Pakistani rupee weakened for a second consecutive session against the dollar in the interbank market on Wednesday.

The rupee closed at 282.22 per dollar, compared with its previous close of 282.11.In the open market, the rupee appreciated slightly, trading at 284.38 against the dollar, up from 284.4 in the previous session.

Dealers said that the local currency continued to weaken in the interbank market due to importer demand for dollars exceeding dollar sales from exporters and remittances. “The rupee, rather than gaining with only two days remaining before Eidul Azha, when remittances from expatriate Pakistanis typically increase, is experiencing downward pressure caused by payment obligations,” a currency dealer said.

Data from the Pakistan Bureau of Statistics shows the trade deficit shrank to $2.6 billion in May, representing a 23 per cent reduction from the previous month. While exports rose 17 per cent month-on-month to $2.6 billion, imports decreased 8.0 per cent MoM to $5.2 billion. The trade gap increased by 11 per cent year over year to $24 billion in the first 11 months of fiscal year 2025 from $21.7 billion in the same period last year.

In a positive development, the Asian Development Bank approved an $800 million programme on Tuesday to strengthen public financial management and boost fiscal sustainability in Pakistan.