KARACHI: The Pakistani rupee ended the final session of 2024 with a slight depreciation of 0.03% against the US dollar, closing at 278.55, down by Re0.07 from the previous session's closing of 278.48, according to the State Bank of Pakistan (SBP).

Despite this minor dip, the rupee appreciated by 1.2% against the dollar over the course of the year.The positive performance of the rupee throughout 2024 can be attributed to several factors. A significant contributor was Pakistan's strong external position, marked by a current account surplus of $646 million in the first 11 months of the year, compared to a deficit of $1.1 billion during the same period in 2023.

Increased remittances and a rise in the SBP's reserves from $8.2 billion in December 2023 to $11.9 billion also played a vital role in supporting the rupee's stability. Additionally, the narrowing of the gap between the interbank and open market rates helped maintain the currency's strength.Globally, the US dollar remained firm on the last trading day of 2024, supported by rising Treasury yields and expectations of fewer US interest rate cuts in 2025.  The dollar's strength, fueled by market expectations surrounding the incoming US administration's policies, was evident in the US Dollar Index, which rose by 6.6% in 2024, nearing a two-year high. In the open market, the Pakistani rupee gained 14 paise for buying but lost 5 paise for selling against the US dollar, closing at 277.75 and 279.59, respectively. The rupee also strengthened against the Euro, gaining 63 paise for buying and 57 paise for selling. Meanwhile, the currency remained stable against the UAE Dirham and Saudi Riyal. For oil, Brent crude futures rose by 0.8% to $74.59 a barrel, although it ended the year lower due to demand concerns.