Rupee weakens

KARACHI: The rupee ended slightly weaker on Monday due to increased month-end corporate and import payments, dealers said.

In the interbank market, the rupee closed at 165.89 against the dollar, compared with the previous closing of 165.79. The rupee also fell in its value against the dollar in the open market. It closed at 166.30 versus the greenback, compared with 166.20 on Friday.

Dealers said the local unit lost ground, amid end of month dollar demand from importers. “We expect the rupee to remain under pressure in the coming days on the back of higher appetite for hard currency for the import and debt repayments,” a foreign exchange dealer said.

“The rupee seems to trade in the band of 166 and 166.25 to the dollar in the sessions ahead.” The rupee traded as low as 166.36 against the greenback during an intraday trade. The domestic currency could have weakened further, but the reports of approving loans from the Asian Development Bank (ADB) to develop capital markets in Pakistan boosted traders' sentiment and helped the rupee prevent more losses.