Rupee weakens

KARACHI: The rupee on Tuesday gave up gains and ended slightly weaker against the dollar in the interbank market, weighed by an uptick in dollar demand from importers, dealers said.

The rupee closed at 176.18 to the dollar, 0.15 percent down from the previous close of 175.92.

Dealers said the local currency crossed the 175 level during the session owing to an increase in dollar demand from importers.

“The rupee lost ground, despite some positive news came on the economic front,” said a foreign exchange dealer.

However, analysts expect an appreciation in the local currency in the near-term on expectations for the revival of Pakistan’s three-year $6 billion International Monetary Fund (IMF) programme and other positive developments.

There has been clarity on the IMF front post approval of the mini budget from the national assembly. Moreover, the measures taken by the State Bank of Pakistan (SBP) and inflows from exporters and remittances have also supported the rupee in recent days.

Remittances from Pakistani citizens working abroad maintained an upward momentum and hit the highest level for the six months in July-December FY2022. Remittances rose 11.3 percent to $15.8 billion in the first half of this fiscal year.