Rupee closes weaker against dollar

KARACHI: The rupee gave up gains on Friday due to dollar demand from importers and weak supplies, dealers said.

The rupee ended at 284.64 per dollar, compared with Thursday’s close of 284.42 in the interbank market.

“We saw some dollar demand from importers, while supplies remained low, which put pressure on the rupee,” said a currency dealer.

However, in the open market, the local unit gained 3 rupees to close at 291.50 per dollar, according to the rates provided by the Exchange Companies Association of Pakistan.

“Positive sentiments stemmed from increased odds of an IMF programme revival following Saudi Arabia's confirmation to the International Monetary Fund that it will give funding to Pakistan, a crucial step required to secure IMF funds,” said another dealer.

“We anticipate the rupee to gain ground as a result of any news from the United Arab Emirates regarding a pledge to provide financial support and the signature of an IMF agreement,” the dealer added.

Pakistan’s foreign exchange reserves held by the central bank dropped by $36 million to $4.207 billion in the week ending March 31. The SBP’s reserves are enough to cover around one month of imports. The SBP attributed the repayment of external debt to the decline in forex reserves.