Rupee ends weaker against dollar

KARACHI: The rupee extended its losses against the US dollar for a third straight day on Wednesday, weighed down by importer demand and exporter caution.

The rupee ended at 278.5 per dollar, slightly lower than its previous close of 278.41.Dealers said that the rupee is steadily losing ground to the dollar due to importers’ ongoing dollar demand and exporters’ meagre inflows, and remittances.

The rupee gained five paisas to close at 279.75 versus the greenback in the open market.In the upcoming trading sessions, dealers anticipate that the rupee will remain range-bound. The State Bank of Pakistan’s monetary policy decision on Monday will determine the rupee’s near-term outlook.Monetary policy poll results are in full swing, with a majority expecting a rate cut of 100 basis points (bps) or more, said Chase Securities in a note.Weakness in international oil prices could potentially lower local prices in the coming weeks. Inflation numbers are already softening, suggesting a favourable outlook, it added.

On Tuesday, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a Zoom meeting with representatives from Moody’s Ratings at the Finance Division. During the meeting, the minister provided an update on Pakistan’s economic outlook.

He emphasized that the country’s foreign exchange reserves have exceeded $9 billion, the consumer price index inflation remains stable at 12.6 per cent, and there has been a significant 7.7 per cent increase in foreign remittances, indicating strong economic resilience.