Rupee falls against dollar

KARACHI: The rupee maintained its downward trend against the dollar in the interbank market on Friday.

The rupee closed at 283.7 per dollar, down 0.02 per cent from the previous close of 283.64.

In the open market, the rupee also fell, trading at 285.74 against the dollar, compared with 285.69 in the previous session.

Dealers said the local unit continued to weaken due to increased demand for dollars for imports and other payments.

The rupee declined, despite an increase in the foreign exchange reserves.

“Pakistan’s forex reserves crossed the $17 billion mark, signalling improved external sector stability and supporting currency sentiment,” said Chase Securities in a note.

The central bank’s foreign exchange reserves increased by $46 million to $11.722 billion as of June 13.

Pakistan recorded a current account surplus of $1.8 billion during the 11 months of the fiscal year ending in June, in contrast to a deficit of $1.6 billion in the same period last year.

However, the country’s current account turned into a $103 million deficit in May from a $47 million surplus in April, driven by higher imports and a decline in exports.

The SBP forecasts the current account to remain in surplus for FY25. However, due to an uncertain global trade environment and a projected strong demand for imports, the current account is expected to shift to a moderate deficit in FY26. Despite weak net financial inflows so far, the SBP anticipates that its foreign exchange reserves will increase to approximately $14 billion by end June 2025.