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Wednesday May 22, 2024

Rupee weakens against dollar

By Our Correspondent
April 25, 2024
A foreign currency dealer counts US dollars at a shop in Karachi. — AFP/File
A foreign currency dealer counts US dollars at a shop in Karachi. — AFP/File

KARACHI: The rupee lost ground against the dollar in both currency markets on Wednesday.The rupee closed at 278.39 per U.S. dollar, compared with Tuesday’s close of 278.37 in the interbank market.

In the open market, the rupee dropped five paisas. The local currency was trading at 279.82, which was less than it was during the prior session.The rupee continued to decline for the third straight day due to the need for foreign currency for imports and other obligations, according to currency dealers.

Because traders are unlikely to take long positions ahead of the monetary policy announcement next week, analysts expect that the rupee will trade in narrow ranges. Even though it is widely expected that the State Bank of Pakistan will maintain its key policy rate at 22 percent at its upcoming review meeting on April 29, interest rate cut expectations have once again gained traction, especially in light of the fact that inflation estimates for the April consumer price index range from 18 to 18.5 percent, and there has been a discernible decline in oil prices.

“This sentiment reverberated across various financial indicators, notably in the treasury yields which saw a decline of 15-20 bps [basis points] in secondary market trading,” said Chase Securities in a note.