Rupee weakens

KARACHI: The rupee ended slightly weaker against the dollar on Monday, and dealers said the currency was expected to remain under pressure in coming days because of import payments.

In the interbank market, the rupee closed at 153.66 per dollar, 0.07 percent weaker than the previous close of 153.55. In the open market, the rupee ended unchanged at 154 versus the greenback.

Dealers said the increasing energy import payments weighed on the local unit and the pressure is likely to remain on the currency in the next couple of sessions. “The rupee is expected to stay stable at 153 levels against the dollar in the days ahead,” said a currency dealer.

“Higher import demand is likely to be offset by stronger inflow of remittances, healthy exports, and expected inflows from the international financial institutions,” he added. The next range for the rupee should be 153.50 to 153.80, dealers said.

As the economy recovers, the trade deficit is widening on the back of imports of capital goods and industrial materials as well as food, together with rising international commodity prices.