Rupee loses more ground

KARACHI: The rupee on Wednesday extended losses, falling 0.21 percent against the dollar amid increased demand for the greenback, dealers said.

In the interbank market, the rupee closed at 158.53 per dollar, lower than Tuesday’s close of 158.19.

The rupee also weakened in the open market, crossing 158 against the dollar. It ended at 159.30 to the dollar, compared with 158.80 in the previous session. The local unit lost 50 paisas during the session.

“There were heavy import payments today, which pushed the demand for the greenback higher,” said a currency dealer. “There are still some imports and debt payments, which mean rupee could weaken further in the days ahead,” he added.

The local unit has been under pressure due to fiscal-year end payment pressure and subdued dollar inflows.

The rupee has already lost 2.58 percent against the dollar so far this month.

Some analysts expect the rupee to stabilse soon as the Saudi Arabia has agreed to restart oil aid worth $1 billion annually. Besides, the finance ministry also clarified International Monetary Fund’s loan programme was intact and World Bank had not withheld loans for Pakistan.