Rupee drops for second straight day

KARACHI: The Pakistani rupee continued its decline against the US dollar for the second consecutive day in the interbank market on Thursday.

The rupee ended at 278.6 per dollar, compared with Wednesday’s close of 278.51.According to dealers, the movement of the local currency saw some minor fluctuations based on the supply and demand of dollars in the market.“The rupee faces pressure if importers and overseas corporations seek more US dollars to fulfil their obligations, and remittances and export conversions do not generate enough supplies to meet that demand,” a currency dealer said.In the open market, the rupee gained 50 paisas to settle at 280.5 versus the greenback.Dealers expect the rupee to remain trade range-bound against the dollar in the coming sessions. However, the short-to-medium-term outlook for the rupee will depend on the finalization of the new International Monetary Fund loan programme.

“As we approach the finalization of the IMF programme, several key recommendations have been revealed, indicating benchmarks to be achieved during the two-three-year programme,” Chase Securities said in a note.“One significant recommendation is the abolition of the Pakistan Sovereign Wealth Fund, which currently holds the shareholdings of major state-owned entities (SOEs),” it said.