KARACHI: The rupee was a little changed against the dollar on Wednesday amid balanced demand and supply of dollars in the market, while investors focused on the evolving US-Iran negotiations, the direction of global oil prices, and developments related to the fiscal year 2027 budget.
The rupee closed at 278.45 per dollar in the interbank market, nearly unchanged from its close of 278.46 in the previous session.Dealers said the local unit remained steady as dollar inflows from remittances and exporters’ dollar sales were sufficient to meet importer demand.
Oil prices rose amid continuing Middle East tensions, which are feared to keep supply disruptions in the region elevated. Brent crude futures hovered near $97 a barrel. Chase Securities said in a note that while uncertainty surrounding the outcome of the US-Iran negotiations persists, the fact that crude oil prices remain below the $100 a barrel mark has provided some relief to investors and moved concerns away from a panic scenario.
“Lower oil prices are particularly important for Pakistan given their implications for the external account, inflation outlook, and future monetary policy direction,” it said.The federal budget, originally scheduled for Friday, has been postponed to next week, with the government yet to announce a revised presentation date.
“Reports suggest that differences with the IMF over revenue targets, coupled with unresolved fiscal discussions between the federal government and provinces, contributed to the delay,” the note said. “The postponement has introduced an element of uncertainty as market participants await clarity on taxation measures, fiscal consolidation plans, and policy initiatives.”
