Rupee extends losses

KARACHI: The rupee extended losses for the third consecutive session on Wednesday because of the prevailing high demand from importers, dealers said.

The rupee closed at 156.96 against the dollar, weakening from 156.79 on Tuesday in the interbank market.

Some dealers said the local unit traded at 157.12 level against the dollar in the intraday trade.

“There’s a market-based exchange rate system so, the rupee is seeing volatility as per the demand and supply factor,” a currency dealer said.

The rupee has been under pressure for the last couple of weeks. Some major reasons behind the rupee depreciating are importing inflation, debt repayment and low remittances after Eid.

High dollar demand from importers, with thin supplies caused the rupee continue to depreciate against the greenback.

“We expect the rupee to be traded at 156.60 to 158 level by the close of this fiscal year,” said Yaqoob Abubakar from Tresmark that tracks financial markets.

“This is also to note that the government has to repay around $300 million to the International Monetary Fund this month,” Abubakar added.