Rupee extends losses

KARACHI: The rupee remained weak for the third consecutive session on Wednesday, breaching 152-level mark, weighed down by importers’ dollar demand,” dealers said.

The rupee closed at 153.24 against the dollar, 0.16 percent weaker than the previous closing of 152.99 in the interbank market.

In the open market, the rupee ended at 153.60 against the dollar, compared with 153.30 on Tuesday. Dealers said the rupee has been under pressure for the last few days owing to the persistent demand for the greenback from importers for payments. “The rupee will most likely to see slight depreciation in the near-term due to increasing import payments,” a dealer said.

“A future course of the rupee will depend on how the inflows will match the demand.”

“We expect the rupee to weaken further in the coming months, as the new economic team wants to support exports,” another dealer said.

Pakistan’s imports rose 71 percent year-on-year to $5.66 billion in March because of ongoing economic recovery. The surge in imports came from wheat, sugar, oil and gas, automobiles and machinery and equipment’s for industries.

The increasing imports are a worrying sign for the external current account. They could widen the country’s current account deficit in future.