Rupee weakens

KARACHI: The rupee ended lower for a third session on Monday amid increased demand for dollars from importers, and weak supplies, dealers said.

In the interbank market, the local unit closed at 177.47 to the dollar, 0.20 percent weaker than the previous close of 177.11. “There was demand today, and we didn’t see exporters selling dollars in the market. The pressure on the rupee was due to a low supply and higher current account deficit,” said a foreign exchange trader.

“The regional currencies are under pressure as the West slapped sanctions on Russia, following its invasion of Ukraine. The impact is also there,” he added. Dealers see the rupee falling further in coming days. The dollar demand looks to remain upward, while exporters are likely to stay away from the market and hold dollars in anticipation of further decline in the domestic currency.

Pakistan’s current account deficit surged to an all-time monthly high of $2.5 billion in January amid soaring imports, high global oil, and other commodity prices. Resultantly, the country’s forex reserves dropped to $22 billion in January, down from $23.8 billion in December. In the open market, Pakistani currency ended at 178.50 per dollar, unchanged from the previous close.