Rupee weakens

The rupee closed slightly weaker against the dollar in the interbank market on Monday, dealers said. The rupee, which traded at 139.30/139.40 during the day, ended at 139.39/dollar, compared with 139.27 in the previous session.

Dealers said the domestic currency traded in a narrow-range. The demand and the supply of the greenback remained in balance, they added. “The rupee is expected to remain range-bound in the coming days,” a forex dealer said.

In the open market, the rupee also lost ground due to increased dollar demand from investors. It closed at 139.70 against the dollar, compared with Friday’s closing of 139.40.

“A steady inflows of dollars, especially in the form of bilateral assistance, is likely to help the rupee avoid a fall,” he added.

The State Bank of Pakistan is expected to receive $1 billion from the United Arab Emirates (UAE) soon. The SBP signed an agreement with Abu Dhabi Fund for Development (ADFD) for the placement of the second tranche of $2 billion on March 9.

The first tranche of $1 billion received in January, while the second installment of $1 billion arrived last week.

Finance Minister Asad Umar told Bloomberg Economic Forum on Monday that the country’s budget for the next fiscal year will focus on further domestic supply expansion through ease of doing businesses.