Rupee slide continues

KARACHI: The rupee posted more losses against the dollar in the interbank market on Thursday on a discrepancy between supply and demand for the dollars, dealers said.

The local unit ended at 219.41 to the dollar, 0.47 percent weaker than the previous close of 218.38.

In the open market, the domestic currency lost 50 paisas to finish at 229.50 per dollar.

Dealers said after the restriction on luxury and non-essential goods was lifted, importers' need for dollars caused the rupee to once again fall.

"Importers are in need of US dollars, while exporters are not selling the US currency. Greenbacks are being withheld by exporters.

The rupee is under pressure on a discrepancy between supply and demand for the dollars,” said a currency dealer.

Dollar supplies have been softened in the open market since the demand for the UAE dirham increased after the Gulf state made it essential for Pakistani travellers to disclose 5,000 UAE currency at the airport at the time of landing. This has also surged dollar demand in the market, according to another dealer.

The rupee is expected to stabilise when Pakistan's loan tranche is approved by the Executive Board of the International Monetary Fund, which is anticipated by August end, the dealer stated.