Rupee weaker

Rupee edged lower for the second straight session on Tuesday in dull trade, dealers said.

Domestic currency closed at 160.58 per dollar, compared with the previous close of 160.53 in the interbank market.

However, the local unit posted gains against the dollar in the open market. The rupee gained 20 paisa to close at 160.60 to the dollar.

Dealers said the currency traded in narrow ranges in the official market due to general importer demand.

“The sentiment in the foreign exchange market is positive. The statement released by the White House following Pakistan Prime Minister Imran Khan’s meeting with the US President Donald Trump is seen as positive for the diplomatic and economic ties of both countries,” a currency dealer said.

“We expect the restoration of $1.3 billion US aid to Pakistan in the tune of Coalition Support Fund as hinted by Trump will have positive implications for the country’s external account,” he said. “Positive developments on the economic front could determine the rupee’s near-term direction.”

President Trump said the US was willing to invest in Pakistan and sees great trade opportunities there. He also talked about expanding trade “10, 20 times”.

He said better economic and trade relations with Pakistan would help combat terrorism as well.