Rupee ends lower

KARACHI: The rupee ended weaker against the dollar in the interbank market on Tuesday.The rupee closed at 282.21 per dollar in the interbank market, compared with the previous close of 282.17.

Dealers said the local unit dipped marginally due to increased dollar demand from importers as the markets reopened after a long weekend. The markets were closed from Friday to Monday for Eidul Azha holidays.

The uncertainty surrounding the federal budget for the fiscal year 2026 also put pressure on the rupee. The budget for the next fiscal year, which starts in July, was presented on Tuesday. Pakistan’s Economic Survey 2024-25, released on Monday, showed that building on the improved external sector performance, gross official reserves held by the State Bank of Pakistan remained stable, reflecting the effectiveness of coordinated fiscal and monetary policies.

“The alignment between government reforms and the SBP’s prudent external account management was pivotal in preserving reserve buffers despite ongoing debt repayments,” it said.“Simultaneously, the exchange rate remained broadly stable, supported by improved current account dynamics, controlling import demand, and sustained remittance inflows. This policy coherence helped anchor market expectations, enhance foreign exchange liquidity, and reinforce confidence in the domestic currency, contributing to the overall macroeconomic stability,” it added.