Rupee inches down

KARACHI: The rupee edged lower against the dollar in the interbank foreign exchange market on Monday, dealers said.

The rupee closed a 159.07 against the dollar, compared with the previous closing of 159.10. In the open market, the rupee closed at 159.40 versus the greenback. It had ended at 159.30 in the previous trade. Dealers said the local unit held almost steady during the session due to the match between the supply and the demand for the dollars in the market.

The sentiment was cautious ahead of the meeting of the Financial Action Task Force. The FATF’s planetary meeting is set to be started from February 22 to 25 in Paris to review Pakistan’s progress and decide about its fate regarding the grey list. “We expect the rupee to stay stable with a slight weakness in the coming sessions,” a currency dealer said. “The month-end dollar demand from importers could put some pressure on the domestic currency.” Traders anticipate the rupee to hold a stable trend, trading at 159/dollar-mark in the near-term, as remittances are increasing and exports have picked up. However, most traders are concerned by a continual decline in the country’s foreign exchange reserves.