Rupee falls further

KARACHI: The rupee eased against the dollar on the third straight session on Wednesday because of the prevailing high demand from importers and soft supplies, dealers said.

In the interbank market, the rupee closed at 168.22 against the dollar, weakening from 167.64 on Tuesday. The local unit depreciated 58 paisas, or 0.34 percent, during the session. The rupee also fell its value versus the dollar in the open market. It ended at 168.80 against the dollar, compared with 168.20 in the previous session.

“Higher dollar demand from importers for payments, especially for crude oil, caused the rupee to weaken. Since there were not enough dollar supplies due to the lack of foreign exchange inflows, the currency lost ground against the greenback,” a currency dealer said.

“After the coronavirus-related lockdown lifted, the oil and general importers shipped goods into the country. So, they require more dollars.” The decline in the country’s forex reserves, amid debt repayments, is also adding pressure to the rupee, the dealer added.

The forex reserves held by the country fell to $18.912 billion during the week ended July 24 from $19.047 billion in the previous week.