Rupee weakens in open market

The rupee weakened against the dollar in the open market on Wednesday, sparked by sudden increase in the dollar demand, dealers said.

The rupee closed at 116.70 for buying and 117 for selling, weaker from Tuesday’s closing of 116.60/116.90.

However, the rupee ended steady at 115.61 to the dollar in the interbank market.

“The kerb market saw a volatile trade due to surge in dollar demand,” said a currency dealer.

An official of the Exchange Companies Association (ECAP) said that the rupee fell to about 117.30 per dollar in late trade amid higher demand and tighter supply.

“Dollar hoarding, capital flight and speculations about further exchange rate depreciation pushed up dollar rates in the open market,” said Zafar Paracha, secretary general at ECAP.

“The rupee is expected to gain strength due to increase in remittance flows in the month of Ramazan,” he said.