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Thursday October 28, 2021

Rupee weakens

October 15, 2021
Rupee weakens

KARACHI: The rupee posted more losses against the dollar in the interbank market on Thursday.

The rupee closed at 171.20 to the dollar, compared with Wednesday’s close of 171.13.

In the open market, the rupee ended slightly weaker at 172 per dollar. It had finished at 171.90 in the previous session.

Dealers said the persistent dollar demand from importers, especially oil, increasing commodity prices, and higher current account deficit continued to exert pressure on the local unit.

Moreover, the outflow of dollars outside the country, and into Afghanistan following the regime change in the neighbouring country is also hurting the domestic currency.

“Though the rupee sustained losses, the SBP’s short-term measures prevented wild swings,” said a foreign exchange dealer.

Restriction on financing terms, imposition of 100 percent cash margin on imports of additional items, and curbing undesirable foreign currency flows by the State Bank of Pakistan would help to arrest pressure on the rupee, he added.

However, analysts see further weakness in the rupee is likely over the current fiscal year. The rupee is expected to fall to 180-182 against the dollar by the end of June this year.