Rupee weakens further

KARACHI: The rupee weakened further against the dollar on Wednesday due to high dollar demand from importers, dealers said.

The rupee closed at 168.26 against the dollar, slightly lower from the previous closing of 168.19 in the interbank foreign exchange market.

In the open market, the rupee held steady at 168.50 against the dollar.

Dealers said the local unit continued losing value versus the greenback, amid dollar buying from importers to make payments.

The local unit is likely to remain range-bound in the coming sessions, dealers said.

Analysts expect the rupee to remain under pressure this year due to fiscal imbalance and increased loan repayments later in 2020 to friendly Gulf Cooperation Council countries, as that bit picks up a political colour.

The Dollar Index is 10 percent lower since the beginning of the year, yet the rupee has gradually eroded in value against the dollar. The rupee has fared well in comparison with other emerging market currencies, depreciating 8 percent, it said.