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Pakistan’s Rupee Edges Higher as India’s Weakens on Firmer Dollar

Stronger remittance inflows bolstered confidence in Pakistan’s interbank market.

Overview

  • Pakistan’s interbank rate closed at Rs279.62 per US dollar on Feb. 13, a Re0.03 gain, according to the State Bank of Pakistan.
  • State Bank officials said the economy is outperforming IMF expectations, which lifted market sentiment.
  • Rising remittances plus reported crackdowns on hawala networks and smuggling supported the rupee’s stability.
  • India’s rupee ended at 90.66 per US dollar after a narrow session, weighed by a firmer greenback, weak equities, and foreign investor outflows of Rs 7,395.41 crore.
  • India introduced a re-based CPI series showing January retail inflation at 2.75%, a shift that informs expectations for RBI policy.