Rupee ends slightly higher against dollar

KARACHI: The rupee ended slightly stronger against the dollar in the interbank market on Wednesday.The rupee closed at 282.95 per dollar, compared with the previous closing value of 283.05.

In the open market, the rupee also strengthened, trading at 285.5 versus the dollar, compared with its previous closing of 286. The current account posted a surplus of $328 million in June, bringing the cumulative surplus to $2.1 billion (0.5 per cent of GDP) in FY25, the SBP said in the monetary policy statement issued the same day.

Workers’ remittances remained instrumental, as they more than offset the widening trade deficit. On the financing front, a sizable portion of planned official inflows materialized in June, propelling SBP’s foreign exchange reserves beyond $14 billion.

“Going forward, workers’ remittances are projected to grow at a slower pace amidst high base effect and recent rationalisation of home remittances incentive schemes,” it added. Meanwhile, the trade deficit is expected to widen due to increased import demand, in line with the improving domestic economic activity, slowdown in global demand and unfavorable export prices – particularly of rice. As a result, the current account deficit is projected in the range of 0-1 per cent of GDP in FY26.

“On the financing side, inflows are likely to improve, partly due to higher expected private flows following the recent upgrade in the country’s credit rating. Based on this assessment, the SBP’s FX reserves are projected to rise to $15.5 billion by end-December 2025,” the SBP said.