Rupee extends losses against dollar

KARACHI: The rupee continued to fall, closing at 278.85 against the dollar on Wednesday, down from 278.82 in the previous session.

In the open market, the rupee also declined, trading at 281.26 per dollar, compared with 281.24 on Tuesday. Dealers said the local currency weakened due to higher dollar demand from importers and companies, which outpaced the supply from exporter conversions and remittances.

According to dealers, the rupee is expected to trade within current ranges as investors await an upcoming monetary policy decision due on Monday.

In a significant development, Finance Minister Muhammad Aurangzeb on Tuesday said that Pakistan has agreed terms for a $1 billion loan with two Middle Eastern banks at a 6-7 per cent interest rate as the South Asian country looks to shore up its finances.

“With two institutions we have now gone forward in signing up the term sheet -- one bilateral and one for trade [finance],” Aurangzeb said during an interview with Reuters on the sidelines of the World Economic Forum (WEF) annual meeting in Davos. In addition, he has invited the global stakeholders “to support Pakistan’s journey by investing in priority sectors such as agriculture, IT, renewable energy and pharma.”