Rupee inches down

KARACHI: The rupee edged lower against the dollar on Wednesday as dollar demand from importers outpaced selling of the US currency by exporters, dealers said.

In the interbank market, the local unit closed at 176.22 to the dollar, compared with Tuesday’s close of 176.18.

Pakistani currency also lost ground in the open market ending at 178.30 versus the greenback. It had closed at 178 per dollar in the previous session.

“The importer demand was there and the supplies from the exporters were not enough, which weakened the rupee during the session,” said a currency dealer.

“We anticipate the local unit to stay stable in the coming days due to some positive developments on the economic front,” he added.

The International Monetary Fund (IMF)’s executive board will meet on January 28 to consider Pakistan’s request for the completion of the sixth review and release of $1 billion under tranche under Extended Fund Facility.

The government is likely to issue a seven-year dollar-denominated sukuk in international debt markets soon.

Moody's Investor Service assigned a B3 backed senior unsecured rating to the proposed US dollar-denominated sukuk issuance by the government. “Pakistan's B3 issuer rating is underpinned by its relatively large economy and robust long-term growth potential, as well as ongoing reforms that may strengthen policy effectiveness over time,” it said in a statement. These developments could be a positive trigger for the rupee in days to come.