Rupee ends lower in interbank

KARACHI: The rupee closed a tad weaker on Thursday as importers’ dollar buying outweighed optimism from a remarkable performance of Pakistan’s benchmark stock index, which surpassed 100,000 points after clarity regarding ongoing political unrest and developments in the banking sector regarding the minimum deposit rate.

The rupee ended at 278.04 against the US dollar in the interbank market, down from its close at 277.96 on Wednesday.“Even if local stocks performed admirably and people had optimistic opinions about Pakistan’s economy, the local unit remained on the defensive due to importers’ dollar-buying and lower inflows from exporters’ dollar sales,” a currency dealer said.

“For a few weeks now, the rupee has been following this pattern: it loses some ground during the first four trading sessions of the week but gains ground during the final session,” the dealer added.“Because of improved dollar liquidity in the market, bolstered by increased remittances and steady foreign exchange reserves, we anticipate that the rupee will continue to follow this pattern and remain stable in the near term.”The rupee also saw a modest decline in the open market, closing at 279.06 to the dollar from 278.97 in the previous session.