KARACHI: The rupee ended largely flat on Thursday after Pakistan reported a current account surplus, providing support to the foreign exchange reserves and currency.
The rupee closed at 278.26 per dollar in the interbank market, compared with 278.27 in the previous session.The country’s current account balance posted a surplus of $459 million in May compared to a deficit of $276 million in the previous month.
The strong external account performance reinforces confidence in the country’s foreign exchange position and reduces pressure on the currency, providing a constructive backdrop for risk assets, said Chase Securities in a client note.
“On the global front, investor sentiment improved after the United States and Iran signed an interim agreement aimed at ending hostilities and restoring normal traffic through the Strait of Hormuz,” the note said.
“The development triggered a decline in international oil prices, with Brent crude falling below $79 per barrel,” it added. “For Pakistan, lower oil prices are positive from both an inflation and external account perspective, potentially reducing the import bill and strengthening expectations of further economic stability.”
