KARACHI: The rupee ended flat against the dollar in the interbank market on Wednesday.The rupee closed at 278.36 per dollar, compared with the previous close of 278.37 in the previous session.
Dealers said the local currency remained stable as inflows from remittances and exporters’ dollar sales were sufficient to meet importer demand. However, traders monitor developments related to the Middle East conflict and the next fiscal year’s budget to gauge the future direction of the rupee.
“Investor sentiment is likely to remain cautious as geopolitical tensions in the Middle East escalated after the US launched strikes against Iran following the reported downing of a US Apache helicopter in the Strait of Hormuz,” said Chase Securities in a note.
“The incident has once again raised concerns over regional stability and the security of global energy supply routes, creating uncertainty across international financial markets,” it added.Finally, the government has announced that the federal budget for the fiscal year 2026-27 will be presented on Friday (June 12).
In a major development, remittances to Pakistan reached an all-time monthly high of $4.3 billion in May, boosting the foreign exchange reserves and supporting the external account.
