Rupee weakens

KARACHI: The rupee ended weaker against the dollar in the interbank foreign exchange market on Monday, losing ground on the back of increased demand for the greenback from importers, dealers said.

The local unit closed at 176.49 to the dollar, compared with the previous close of 176.24. It fell by 25 paisas or 0.14 percent during the session. Dealers said supplies remained low amid weak inflows from exporters.

“Despite today’s weakness in the rupee, we expect it to trade on a stable note in coming days due to the absence of positive triggers in the market,” said a foreign exchange dealer. December's current account deficit was slightly lower than analysts’ expectations. The current account deficit stood at $1.93 billion in December from $1.89 billion in November.

The State Bank of Pakistan’s monetary policy committee on Monday left the benchmark interest rate unchanged at 9.75 percent for the next one and half month. The decision was in line with market expectations.

The government has also started to market a seven-year dollar sukuk to the global investors. Initial news suggest that initial profit thoughts (IPT) of Pakistan sukuk to start from 8.25-8.37 percent level. “It seems to close soon but at a higher yield close to 8 percent,” said Mohammed Sohail, CEO at Topline Securities.