Rupee extends losses in interbank market

KARACHI: The rupee ended lower for the second straight session on Tuesday, as importers’ demand for dollars exceeded inflows from exporters and remittances, dealers said.

The rupee closed at 278.68 to the US dollar, compared with Monday’s close of 278.63 in the interbank market.“The demand for dollars from importers existed, and we observed that supplies from exporters and remittances were insufficient to meet importers’ needs,” a currency dealer said.

In the open market, the rupee finished at 280.4 per dollar, unchanged from the previous close.

Global stocks recovered after experiencing volatility on Monday due to Japan’s decision to raise interest rates and increase investor costs of capital, which resulted in the unwinding of carry trades and increased instability in the world’s bond and equities markets.

In erratic trading on Tuesday, oil prices fell as concerns over a worsening Middle East war and a decline in Libyan output offset a dismal demand outlook. Brent crude futures were down 41 cents, or 0.54 per cent, to $75.89 a barrel, while US West Texas Intermediate crude futures dropped 43 cents, or 0.59 per cent, to $72.51.

Analysts anticipate that the softening of global commodity prices could alleviate pressure on Pakistan’s external account balance, thereby helping to reduce the country’s import bill.The current account deficit in the fiscal year 2024 narrowed significantly to $681 million or 0.2 per cent of the gross domestic product (GDP) from 1.0 per cent in the preceding year.