KARACHI: The rupee retreated on Monday due to renewed dollar demand from importers and corporates to settle payments, dealers said.
In the interbank market, the rupee closed 0.30 percent lower at 166.72 per dollar, compared with previous close of 166.72. Dealers said the domestic currency retreated because of fresh demand for the greenback from importers.
“We saw importers and corporate customers came to the market to buy dollars that put pressure on the rupee,” said a dealer at a local commercial bank. “We expect the rupee to follow a range-bound trading pattern in the coming sessions as dollar supplies look sufficient to match demand.”
Dealers see the rupee to trade in the band of 166.50 to 167.25 per dollar in coming days.
The State Bank of Pakistan’s foreign exchange reserves rose by $1.270 billion to $11.231 billion as of June 26, due to the inflows of $3 billion received from the multilateral lenders last week. The rupee closed at 166.70 against the dollar in the open market, compared with 166.80 in previous session.