Rupee ends weaker

KARACHI: The rupee closed weaker in the interbank foreign exchange market on Monday due to importer dollar demand, dealers said.

Lack of dollar sales by exporters and slowdown in remittances also pushed the rupee down. Dealers said the local unit came under pressure amid dollar buying from importers to make their payments. The rupee ended at 164.43 per dollar, 0.15 percent or 25 paisas lower than the previous close of 164.18. In the open market, the rupee fell by 40 paisas to 165 versus the greenback. It finished at 164.60 on Friday. “There was increased dollar demand from importers. There were some inflows from remittances but they were not enough to meet the market demand,” a currency dealer said. “We expect the downward pressure to remain until the import payments cover. However, the inflows from the International Monetary Fund under its enhanced special drawing rights allocation is expected to be received today (Monday) will provide support to the forex reserves and the rupee in coming days,” he added.

Dealers see 164.50 as a support level for the rupee. If the inflows are higher than the importer demand, and global oil prices continue to witness a declining trend, they said the rupee could recover to a 163 level in the near-term.