Rupee ends weaker

KARACHI: Rupee lost ground against dollar on Wednesday as the market sought guidance in the wake of the government's ongoing and tough negotiations with the International Monetary Fund (IMF) to restart the $6.5 billion loan programme.

The rupee fell 0.35 percent to close at 268.83/dollar in the interbank market.

The rupee has been resisting the 270 level versus the dollar. Wednesday saw a modest decline, although the prior session saw a recovery. According to analysts, slight ups and downs in the currency's movement during a consolidation phase are normal and the local unit generally remained stable.

“It is [rupee] in the range now. 0.35 percent move on a daily basis is not much,” said Fahad Rauf, the head of research at Ismail Iqbal Securities.

The local currency gained 1.50 rupees or 0.54 percent to settle at 275/dollar in the open market.

Zafar Paracha, the secretary general of the Exchange Companies Association of Pakistan said in the keb market, the rupee gained thanks to an increase in the supply of dollars.

“We had adequate foreign currency to cover client demand. If there are any encouraging developments on the IMF front, we anticipate the rupee to appreciate further,” Paracha added.