Rupee weakens

The rupee ended slightly lower against the dollar on Monday, amid an uptick in the demand for the greenback from importers, dealers said.

The rupee closed at 155 against the dollar, compared with the previous closing of 154.96 in the interbank market.

Dealers said the currency backed to the 155 level again; following dollars demand by the importers. “The import demand was there, as they [importers] bought the US currency to cover payments.”

In the open market, the local currency closed at 154.70 against the greenback for the six straight session. The rupee has been supported by a $1.3 billion loan disbursement from the Asian Development Bank, strong foreign exchange reserves positions and improved economic outlook.

The forex reserves held by the State Bank of Pakistan stood at $9.233 billion in the week ended December 6, compared with $9.112 billion in the previous week. The local unit is expected to post slight gains this week due to anticipated inflows from the IMF, dealers said.

The International Monetary Fund’s board and Pakistani authorities are scheduled to discuss the first review on Thursday, which will pave the way for the disbursement of the second tranche worth $450 million under its three-year loan programme.