Rupee closes mildly weaker against dollar

KARACHI: The rupee extended its losses against the US dollar for a third straight session in the interbank market on Wednesday due to weak supplies, dealers said.The rupee closed at 278.74 per dollar, compared with Tuesday’s close of 278.65.

Dealers said that the rupee declined because importers’ demand for US dollars outpaced exporters’ inflows, putting pressure on the local currency.However, the rupee gained little ground against the dollar in the open market. It was trading at 280.5 per dollar, up from 280.6 in the previous session.

The State Bank of Pakistan on Monday said that currently there are no restrictions on imports by the SBP, and banks are allowed to make import transactions as per their policy without obtaining prior permission from the SBP. Importers can contact their respective banks for the opening of LCs.

During a news conference following the July 29 monetary policy meeting, the SBP’s governor Jameel Ahmad expected more import growth. Still, he said the central bank will have more cushion to finance the imports.

Comparing current figures to previous numbers, he said non-oil imports have increased to a monthly average of $3.2 billion from the previous $2.2 billion, while oil imports have decreased from the previous average of $2.3 billion to $1.4 billion.