Rupee closes weaker versus dollar

KARACHI: The rupee ended lower on Friday as dollar demand from importers surpassed selling of the US currency from exporters.

In the interbank market, the rupee closed at 279.57 per dollar, down 0.04 per cent from 279.46 in the previous session. The rupee also weakened in the open market. It traded at 281.17 against the dollar, compared with 281.08 the day before.

Dealers said that the local unit experienced a gradual depreciation due to increased demand for dollars for import payments, but the supply from exporters selling dollars was not enough to satisfy that need.

The rupee lost ground, despite a slight increase in the foreign exchange reserves. Data from the State Bank of Pakistan showed Thursday that its reserves rose by $35.0 million to $11.20 billion in the week ending February 14.

The country's total liquid foreign reserves rose by $85.0 million to $15.948 billion. Commercial banks' reserves also increased by $50.0 million to $4.746 billion.

Pakistan’s current account turned to a deficit of $420 million in January from a surplus of $474 million in the previous month. The fundamental cause of the current account deficit in January is the increase in the trade and services imbalance, attributed to a rise in goods imports and a decline in services exports.