Rupee falls

KARACHI: The rupee weakened 0.40 percent against the dollar on Friday because of high demand for the US currency to pay for imports, dealers said.

In the interbank market, the rupee was quoted closing at 159.94 to the dollar, compared with Thursday’s close of 159.30. It fell by 64 paisas during the session.

“Today, the outflows were higher than inflows. The mismatch between demand and supply of dollars added to pressure on the domestic currency,” said a currency dealer.

“There had been oil, commodities and machinery and equipment imports,” he added.

Dealers said they expected the local unit to remain under pressure in the coming days.

Importers seem to cover payments prior to Eid-ul-Azha holidays.

The rupee is likely to break the support level of 159 and touch 160 next week, according to dealers.

It has lost 1.31 percent against the dollar since the beginning of this fiscal year. Increased demand for dollars especially for oil payments as a result of rising international prices pushed the rupee down.

The rupee declined by 60 paisas in the kerb market. It ended at 160.30 per dollar, compared with 159.70 in the previous session.