Rupee falls

KARACHI: The rupee ended marginally weaker against the dollar in the interbank market on Monday due to importers’ dollar demand for payments, dealers said.

The rupee closed at 160.80 against the dollar, compared with the previous closing of 160.75. In the open market, the rupee ended 0.31 percent weaker at 161.25 to the dollar.

“The rupee remained under pressure in the last week, owing to the sustained high dollar demand in the market,” the currency dealer said. “We saw importers buying dollars to settle their payments,” the dealer added.

Dealers expected the local unit would lose more value against the greenback in the coming sessions, as payment obligations build up pressure on the exchange rate. “The rupee may trade in the band of 160.90 to 161.30 this week if inflows are not enough to meet the market demand,” another dealer said.

The State Bank of Pakistan, in the monetary policy announced on Friday, said persistent improvement in the current account position and improving sentiment led to a mild appreciation in the rupee since the last meeting and further strengthened external buffers.

The SBP’s foreign exchange reserves rose to $13 billion, their highest level since December 2017. Based upon the data available so far, the outlook for the external sector has improved further and the current account deficit for FY21 is now projected to remain below one percent of gross domestic product, it said.