Rupee keeps losing ground to dollar in interbank market

KARACHI: The rupee maintained its downward trend against the US dollar for a third straight session in the interbank market on Wednesday.

The rupee ended at 278.73 per dollar, slightly down from its previous close of 278.68.Dealers said that an uptick in importers’ demand for dollars was the reason why the rupee kept falling. Exporters were hesitant to sell significant amounts of dollars in advance. This led to a little discrepancy between the market’s supply and demand for US dollars.

The local unit maintained its value versus the dollar in the open market, closing at 280.4 for the second straight session.Dealers anticipate that the rupee will move in narrow ranges until the International Monetary Fund’s executive board approves a new $7 billion loan programme for Pakistan.

Bloomberg reports that Pakistan has secured debt rollover assurances from China and the UAE for one year.“Pakistan needed debt rollover assurances from China, the UAE, and Saudi Arabia for three to five years to gain program approval from the IMF Executive Board,” said Chase Securities in a note.“However, according to the latest reports, only China and the UAE have agreed to a one-year rollover.