Rupee ends lower against dollar

KARACHI: The Pakistani rupee closed weaker against the US dollar in the interbank market on Monday.The rupee finished at 278.68 per dollar, down from 278.58 on Friday.

Dealers said the local currency relinquished its gains in the previous two sessions, ending slightly lower as the demand for dollars from importers surpassed the inflows from exporter conversions.

In the open market, the rupee also declined, trading at 280.48 against the dollar compared with 280.4 in the previous session.Analysts expect the rupee to trade within the range of 278 to 279, with increased volatility in swaps. They anticipate that premiums will rise in the coming weeks, despite an expected cut in interest rates at the upcoming monetary policy meeting scheduled for January 27. However, these higher premiums may not be sufficient to attract a larger number of exporters, as they view the potential downside for the rupee-dollar exchange rate as limited, with a Rs1-3 premium (for 1-3 months) considered too little incentive.

In a significant development, Pakistan’s finance minister Muhammad Aurangzeb said in an interview with Bloomberg that the country plans to raise $200 million to $250 million from Chinese investors over the next six to nine months. Additionally, the government remains optimistic about meeting the bailout loan terms set by the International Monetary Fund (IMF). According to Aurangzeb, the IMF is scheduled to visit Pakistan next month.