Rupee extends losses

KARACHI: The rupee dropped for the second consecutive session on Wednesday as higher demand for US dollars from importers pushed the local unit down.

The rupee closed at 161.90 to the dollar, 0.35 percent or 57 paisas weaker than the previous close of 161.33 in the interbank market.

The rupee depreciated by 50 paisas to 162 against the dollar in the open market.

Dealers said that the domestic currency lost ground due to persistent dollar demand from importers to make payments. Besides, the broader rally in US dollar against major currencies also pressured emerging currencies, including the rupee.

The rupee has been under pressure on the back of deterioration in the current account deficit amid pick-up in domestic activity as well as seasonality in import payments and higher global commodity prices.

The expected further increase in imports aggravated concerns about Pakistan’s balance of payments position.