Rupee weakens slightly on importers’ dollar demand

KARACHI: The rupee ended slightly weaker in the interbank market on Thursday as demand for dollars from importers surpassed sales of dollars from exporters.

The closing rate of the rupee against the US dollar was 278.20, which is 10 paisas or 0.04 percent lower than the previous day's closing price of 278.10.Dealers said that although there was a dollar demand from importers, there was a weak dollar supply because of exporters' limited dollar sales.

“The reluctance of exporters to sell substantial amounts of dollars in forward prompted the rupee to fall slightly versus the US currency,” said a currency dealer.In the open market, the rupee gained three paisas against the dollar, trading at 279.11 per dollar, compared with 279.14 in the previous session.

According to analysts, the rupee is expected to trade in narrow ranges in the coming sessions due to the optimism surrounding the International Monetary Fund's visit to Islamabad this month to finalise a new bailout. The local currency is expected to remain range-bound until June, after which it may experience a depreciation of 2 rupees per month over the next six months. As per the analysts' predictions, the rupee is expected to close in the range of 292-295 by December 2024.