Rupee weakens

KARACHI: The rupee reversed gains to end slightly lower on Friday as demand for the dollars from importers and companies put pressure on the local unit, dealers said.

The rupee closed at 156.89 per dollar, compared with Thursday’s close of 156.74 in the interbank market. However, the rupee ended at 157.30 versus the greenback in the open market. It had settled at 157.40 in the previous session.

Dealers said domestic currency lost ground again due to dollar buying from the importers and firms.

“The rupee witnessed a volatile session today on the back of increased import payments,” said a currency dealer. “It traded as low as 156.95 during the session.”

Dealers expect the rupee to trade in a stable range against the dollar next week.

It has been under pressure for the last two weeks on the back of fiscal year end import payments and thin supplies. Debt repayments also weighed on the domestic currency.

Further weakening is expected, with the unit trading at 158 per dollar by the end of this month.