KARACHI: The Pakistani rupee weakened against the US dollar on Monday, despite remittances reaching an all-time high of $4.1 billion in March.

The rupee fell 0.05 per cent, or 13 paisas to 280.6 per dollar in the interbank market. However, in the open market, the rupee inched higher, trading at 282.06 to the dollar, compared with 282.08 in the previous session.

Dealers indicated that the local currency lost value due to higher dollar demand from importers, which outpaced the supply from exporters’ selling. While the record monthly remittances positively impact the local currency and the current account, the market did not respond favourably.

Over the first nine months of the current fiscal year, Pakistan’s remittances from overseas workers increased 33.2 per cent, totalling $28 billion. Zafar Paracha, secretary general of the Exchange Association of Pakistan, while referring to the surge in remittances, said that with foreign exchange reserves expected to exceed $14 billion by June, this trend marks a significant vote of confidence in Pakistan’s economic direction and stability. He commended the effort of all stakeholders in steering the country towards financial resilience and growth.