Rupee slides further

KARACHI: The rupee maintained its declining trend for a fourth straight session against the dollar in both the currency markets amid soft dollar supplies and flood worries, dealers said.

The local unit ended at 221.42 per dollar on Tuesday, 0.70 percent weaker than Monday’s close of 219.86 in the interbank market.

The domestic currency lost 1 rupee to settle at 233 versus the greenback in the open market.

The rupee posted losses for the fourth straight session because of reduced dollar supplies, while the fears of economic slowdown caused by floods dented sentiment on the currency.

Dealers said an increased demand for the greenback from importers and dried inflows sent the rupee lower in the forex market.

“The rupee has been under pressure as worries about how badly the terrible floods have affected the economy. Lower supplies have also put pressure on the local unit,” said a currency dealer.

The floods could put pressure on the overall GDP (gross domestic product), inflation, exports and government budget deficit, according to analysts. People are expecting more imports and less exports and higher current account deficit, which could have repercussions for the rupee.