The Pakistani rupee concluded 2024 on a positive note, appreciating by 1.2% over the year, supported by a strengthened external position and improved economic indicators.Â
According to a note by Arif Habib Limited, the current account surplus reached $646 million in the first 11 months of 2024, reversing a deficit of $1.1 billion during the same period last year.
Higher remittances and a rise in the State Bank of Pakistan’s reserves to $11.9 billion from $8.2 billion in December 2023 also contributed to the rupee’s stability. Additionally, the narrowing of the interbank and open market exchange rate gap played a role in supporting the local currency.
Despite this overall positive trajectory, the rupee weakened against the dollar in the interbank market during the final trading session of the year. It closed at 278.55 per dollar on Tuesday, slightly down from 278.47 in the previous session.
Dealers attributed the decline to increased dollar demand from importers on the year’s last trading day. However, remittances and dollar sales from exporters fell short of meeting market demand. The end-of-year squaring of positions also added to the upward pressure on dollar demand.
In December, the rupee depreciated by 0.2% and has declined by 0.1% since the start of the fiscal year. In the open market, the rupee ended at 279.59 per dollar, down marginally from 279.54 in the prior session.
