Rupee declines

KARACHI: The rupee ended 0.12 percent weaker on Monday, as importers and companies bought dollars to settle their payments, dealers said.

In the interbank market, the rupee closed at 160.52 against the dollar, compared with the previous closing of 160.33. In the open market, the rupee lost 20 paisas to finish at 160.60 against the greenback.

Dealers said increased demand for the greenback from the importers and the corporate sector put pressure on the domestic currency. “There were payments in the market today, which usually happens on Monday. The US markets were closed, so payments were done on the TOM (one-day) forward market rate,” a currency dealer said.

The US markets remained closed on Monday in observance of Martin Luther King Day. Most dealers were expecting the rupee to lose ground this week, owing to increased payment pressure and the lower supply of the dollar.

However, the improvement in supplies is likely to help ease pressure on the local unit in the coming sessions. The rupee is expected to trade in the band of 160.35 and 160.75/dollar in the days to come, dealers said.