Rupee ends down

The rupee ended lower on Monday, as the demand for the dollar from importers weighed on the currency, dealers said. The local currency closed at 154.27 against the greenback, compared with the previous closing of 154.16.

However, in the open market, the rupee gained 10 paisas to end at 154.30 against the dollar. “We saw some demand from the importers,” a currency dealer said, adding: “The rupee traded at 154.30 and 154.40 in the TOM (one-day) forward market.”

Sentiment was negative due to uncertainty about the release of the third tranche from the IMF, despite the country’s efforts in meeting July-December 2019 end performance criteria and progress made in advancing reforms as hailed by the IMF after it concluded the review of the economic reforms.

Dealers said the upcoming $450 million third installment of the IMF is likely to be released with strings attached. Tax revenues are way off target, which signals there will be more tightening in the coming days, only after which Pakistan would get the third tranche, they added.

Meanwhile, the government has denied the reports, saying tough prior actions are required to secure the third tranche from the IMF. Dealers expect any positive outcome from an ongoing FATF review meeting a good omen for the local currency.