Rupee to stay under pressure

KARACHI: Rupee is likely to stay under pressure during next week due to growing demand of dollars from importers and for corporate payments after Eid holidays, experts said.

Government announced Eid holidays from September 1 to 4 (Friday to Monday). Dealers in currency market said some pressure on rupee value was seen on the last working day (August 31) as the local unit depreciated 10 paisas against the greenback.

In the four trading days of week, rupee value remained flat and in the range of 105.39 and 105.40 to the US dollar.

One currency expert said rupee may face some depreciation due to large size current account deficit.

Governor Tariq Bajwa of State Bank of Pakistan, however, said depreciation in rupee was not the solution to reduce current account deficit. 

Bajwa said depreciating the value of local unit would have implications for inflation.