Rupee weakens

KARACHI: The rupee fell against the dollar on Monday, breaching the level of 155 undermined by pickup in importers’ demand, as the fiscal year 2021/22 draws to an end, dealers said.

The increase in the international oil prices also put pressure on the local currency. In the interbank market, the rupee closed at 156.19 against the dollar, 0.29 percent lower than the previous closing of 155.74.

In the open market, the rupee lost 60 paisas to close at 156.60 against the dollar. Traders said the local currency came under pressure, as importers and corporate firms sought dollars to meet their commitments at the close of the current fiscal year. “The higher demand and increased import payments are going to be even more critical for the rupee, as inflows of dollars are limited,” a trader with a commercial bank said.

“The rupee could test 156/dollar level this week,” he added. The rupee has been under pressure in the last couple of weeks, amid traders rebalancing their portfolios after adjusting for a trending Real Effective Exchange Rate (REER).