Rupee ends lower against dollar

KARACHI: The rupee slightly fell in the interbank market on Monday due to weak supplies amid sluggish dollar sales from exporters, dealers said.

The rupee closed at 277.68 against the US dollar, slightly down from its close at 277.64 in the previous session. According to dealers, the local unit has been experiencing seesaw movement for the past few weeks, with prices ranging between 277.6 and 277.9 per dollar.

“The rupee lost ground as dollar supply from exporter conversions and remittances fell short of dollar demand from importers and corporates,” a currency dealer said. “Exporters have little motivation to lock in forward deals as a result of a decline in swap premiums,” the dealer added.

The rupee also declined in the open market. It was trading at 278.63 versus the dollar, compared with 278.6 in the previous session. Dealers anticipate that the local currency will stay steady in the coming sessions due to signs of economic recovery, a stable exchange rate, a managed current account balance, a reduction in interest rates, and slowing inflation.

According to reports, citing a statement from the Ministry of Finance, Pakistan has requested China for an additional 10 billion yuan ($1.4 billion) loan, underscoring the continued difficulties Islamabad still has in obtaining external funding. Finance Minister Muhammad Aurangzeb met with China’s Vice Minister of Finance Liao Min and requested the Chinese side to raise the limits under the currency swap agreement to 40 billion yuan.