Rupee gives up gains

KARACHI: The rupee lost the previous session’s gains on Thursday hurt by dollar buying from importers to make payments, with dealers expecting the local unit to stay range-bound in days ahead.

The rupee closed at 167.66 per dollar in the interbank market, compared with Wednesday’s close of 167.25. It fell by 0.24 percent during the session.

In the open market, the rupee ended at 168.50 to the dollar, weaker than the previous close of 168.20.

“It (rupee) has been seesawing for the last week, depending upon the demand and supply of the greenback in the market,” said a currency dealer. “Importer demand was higher today, while the supplies were softened.”

Dealers expect the local unit to remain stuck at 167 levels, and it’s unlikely to cross this mark in the coming sessions.

“We think the government is considering measures to ease the pressure on the current account by curbing unnecessary imports,” said another dealer.

“The sharp downside moves in the currency will trigger inflationary pressure, which will compel the central bank to start raising interest rates sooner rather than later,” he added.

The upcoming remittance data could provide clues on the direction of the rupee.

Remittances from Pakistani workers employed aboard declined by 2.1 percent year-on-year to $2.71 billion in July.