Rupee inches down

KARACHI: The rupee closed slightly weaker than US dollar in the interbank market on Friday as demand for the greenback increased from importers, traders said. The local unit fell 0.04 percent to close at 286.93 per dollar in the interbank dealings. It had closed at 286.81 a dollar in the previous session. In the open market, the domestic currency ended the day at 305 to the dollar, unchanged from the previous close. With anticipation around the budget announcement, the currency largely traded in a range-bound manner as investors awaited the release of the budget's specifics, according to dealers.

“Due to an increase in the demand for dollars for imports and other payments, the value of the rupee in the official market somewhat decreased. In general, market participants were hesitant to adopt new positions before the budget presentation,” said a dealer. The government was due to unveil the budget for the 2023-2024 fiscal year on Friday. Despite the government's efforts to achieve a current account surplus every month, the foreign exchange reserves continue to deplete,” said Chase Securities in a note. “The month of June carries significant debt repayments, and while the finance minister has stated that the debt will be rolled over, it remains uncertain whether the debt will be repaid and received back or simply extended,” it added. “Additionally, eyebrows have been raised by the FM’s remark that the new programme will be negotiated by the incoming government after the elections.”