Rupee falls further

KARACHI: The rupee posted more losses on Thursday, breaching the 280 per dollar mark, a level at which the local currency had been hovering for more than a month.

The rupee fell 0.04 per cent, or 10 paisas, to 281.07 against the dollar in the interbank market. The local currency also lost ground in the open market. It traded at 282.58 per dollar, compared with 282.49 in the previous session.

Dealers said the rupee extended losses for the second consecutive session in the interbank market due to increased demand for dollars for import payments. The supplies from exporters’ dollar conversions were not sufficient to meet the market requirement.

According to analysts, escalating tensions between India and Pakistan following a recent terrorist attack in Indian-occupied Kashmir hurt investor sentiment. In response, India has taken a series of retaliatory measures, including the announcement of its intent to terminate the Indus Waters Treaty. “This significant development is likely to heighten geopolitical risks in the region and draw close attention from financial markets,” said Chase Securities in a note.