Rupee breaches 161 levels

KARACHI: The rupee posted more losses against the dollar on Friday, breaching 161 levels, dragged by higher import payments and weak supplies, with additional weakness expected in the currency, traders said.

The rupee closed at 162.43 per dollar, 0.33 percent or 54 paisas weaker than Thursday’s close of 161.89 in the interbank currency market.

It also continued to be under pressure in the open market, tracking losses in the rupee’s value in the interbank market. The local unit fell 70 paisas against the dollar. It ended at 162.70 to the dollar, compared with the previous close of 162.

Dealers said the demand for greenback was higher, but the inflows were subdued. Exporters were reluctant to sell dollars, while inflows from remittances were also not sufficient to cater the market requirement.

The decision to impose a complete lockdown by the Sindh government from Saturday to curb the spread of the surge in the coronavirus infection cases also hurt investor sentiments.

The rupee is expected to move in a band of 162.30 to 162.70 next week.

Currency has been under pressure owing to persistent import payments and rise in international commodity prices. This, along with external debt repayments, has caused a decline in the foreign exchange reserves.