Rupee weakens

KARACHI: The rupee weakened on Monday, as the dollar demand from importers and corporates, looking to meet month-end commitments, weighed on the domestic currency, dealers said.

In the interbank market, the rupee lost 0.38 percent, or 62 paisas, against the dollar, as it closed at 160.71/dollar, compared with 160.09 on Friday. The rupee ended weaker at 160.80 versus 160.3 in the previous trading session.

“Importers and the companies bought dollars, as there were some payments before the month ends,” a currency dealer said. “The rupee also dropped on the back of dollar buying ahead of the long weekend,” he added.

Markets will be closed on Friday for a holiday on account of Christmas and Quaid-e-Azam Day. Dealers seem to continue to be bullish on the rupee in the near-term. “The downside pressure on the rupee is short-lived, driven by the month-end demand. The pressure on the rupee will be normalised, once all these payments are covered,” another dealer said.

“There is a probability of the local unit trading at 159 level in the next few trading sessions.” The rupee should gain owing to strong inflows from workers remittances, exports, and Roshan Digital Account, they added.