The local unit weakened by three paisas against the greenback which was trading at Rs281.89 at the closing of the market as against the closing of Rs281.86 on December 29, 2023.

It is pertinent to mention that the interbank market was closed for three days including January 1, which was declared a bank holiday by the State Bank of Pakistan.

The local currency started to make some ground against the dollar in interbank and open markets last year after Pakistan and the International Monetary Fund reached a staff-level agreement on a $3-billion stand-by agreement in July 2023.

The rupee’s value also stabilised due to a crackdown on smuggling and hoarding of dollars by the caretaker government.