Rupee extends losses

KARACHI: The rupee weakened further against the dollar in the interbank market on Tuesday, dealers said.

It closed at 159.51 against the dollar, 0.09 percent down from Monday’s close of 159.36.

In the open market, the local unit ended at 159.80 per dollar. It finished at 159.70 in the previous session. Dealers said the rupee sustained losses on the back of persistent higher demand for the greenback from importers. The inflows were not enough to cater the market demand.

“Importers and companies look to cover payment obligations before Eid-ul-Azha holidays,” said a foreign exchange dealer.

The government has not announced the Eid holidays yet, but market participants assume these would be almost a week-long.

“We have seen the rupee frequently lose ground. The domestic currency is likely to remain under pressure in the coming sessions. The strong resistance level for the rupee is 159.70 and then 160,” he added. The rupee has been under pressure due to increased import payments, following a spike in international oil prices. Besides, the reparation of profits and dividends from the multinational firms to their headquarters overseas surged the greenback demand in the market.