Rupee falls in interbank

KARACHI: The Pakistani rupee ended weaker against the US dollar in the interbank market on Friday.The rupee closed at 281.05 per dollar, compared with the previous close of 280.97.

In the open market, the rupee held steady, trading at 282.89 versus the dollar. It settled at 282.9 in the previous session.Dealers said the local unit declined due to dollar demand from importers following the market’s reopening after a one-day break.

The financial markets were closed on Thursday for the Labour Day holiday.According to dealers, the geopolitical concerns seem to have subsided, and now the market players are watching the central bank’s monetary policy meeting next week for clues regarding the future trajectory of the rupee.

Pakistan’s consumer price index inflation slowed to 0.28 per cent in April from 0.7 per cent in the previous month. Analysts and markets expect a modest rate cut in interest rates in light of the sharp decline in inflation. However, some analysts think risks to Pakistan’s economy from global trade disruptions, geopolitical tensions, and inflation concerns will likely keep the State Bank of Pakistan (SBP) cautious at its upcoming policy review on Monday.The SBP kept its benchmark interest rate unchanged at 12 per cent in March.