KARACHI: The rupee ended a little changed on Monday, as the federal budget for the fiscal year 2026-27 anticipates stability in the external account and sustained momentum in remittances, while a decline in oil prices boosted sentiment.
The rupee closed at 278.31 against the dollar in the interbank market, compared with the previous close of 278.32 in the previous session.Analysts said that Budget FY27, unveiled on Friday, assumes continued external stability, with exports estimated at $32.9 billion, imports at $70 billion, remittances at $42 billion, inflation at 8.2 per cent, and gross domestic product growth at 4 percent.
Additionally, the reopening of the Strait of Hormuz and easing geopolitical tensions following the confirmation of a US-Iran peace agreement have triggered a sharp decline in energy prices, with Brent crude trading at 82 a barrel, down 5 percent.
The State Bank of Pakistan kept its benchmark interest rate unchanged at 11.5 percent on the same day, weighing inflation pressures from the Middle East conflict against slowing economic activity.
“The realisation of sizable workers’ remittances during May is likely to contain the current account deficit in FY26 to the lower end of the earlier projected range, despite the challenging external environment,” the SBP said in the statement.
