KARACHI: The rupee closed almost flat against the dollar in the interbank market on Tuesday.The rupee ended at 278.46 per dollar, compared with 278.47 in the previous session.In the open market, the rupee closed at 279.52 against the dollar, unchanged from the previous close.
Dealers said that the local currency remained stable due to improved dollar liquidity, fuelled by increasing forex reserves and Eid-related remittance inflows.Pakistan’s FX reserves held by the State Bank of Pakistan increased by $66 million to $17.147billion as of May 22. The country’s total liquid foreign reserves rose by $58 million to $22.646 billion. However, the reserves of commercial banks fell by $8 million to $5.499 billion.
Analysts said that investors are keeping a close eye on the upcoming federal budget for fiscal year 2027. There is ongoing speculation about potential taxation measures, sector-specific incentives, and efforts toward fiscal consolidation. Additionally, investors are exercising caution due to the fragile state of the regional ceasefire and ongoing geopolitical tensions.
“A steady oil price environment in the $90-95 a barrel range has provided some comfort that Pakistan’s external account pressures remain manageable, although a sustained move higher in crude prices could reintroduce concerns regarding inflation and the current account outlook,” said Chase Securities in a note.
