KARACHI: The rupee ended a little stronger against the dollar on Tuesday after recovering from the losses of the previous two sessions. In the interbank market, the rupee rose to 279.95 per dollar from 280.07 in the previous session.

The rupee was trading at 281.5 against the dollar in the open market, as opposed to 281.49. Dealers said the local unit gained ground because of better supply following dollar sales from exporters. Remittance inflows tied to Ramadan boosted the rupee.

The State Bank of Pakistan (SBP) surprised the markets by pausing the easing cycle on Monday, citing inflation concerns. After cutting rates six times in a row, the SBP maintained its key policy rate at 12 per cent.

“The Monetary Policy Committee (MPC) assessed that the current interest rate remains sufficiently positive to support macroeconomic stability, given the anticipated recovery in economic growth, improving external inflows and a manageable debt repayment outlook,” said Chase Securities in a note.

“However, we believe this decision reflects a temporary pause in the monetary easing cycle rather than an end to it,” it added. “International markets have declined amid concerns over future economic growth, exacerbated by the ongoing trade war and tariff-related uncertainties. Meanwhile, commodity prices have softened, with oil experiencing a significant drop,” it noted. “This decline is beneficial for Pakistan as it eases pressure on the external account and supports a downward trajectory for inflation.”