Rupee falls in interbank, open market

KARACHI: The rupee slightly depreciated against the dollar in both currency markets on Thursday due to an increased demand for dollars.

In the interbank market, the rupee ended at 278.39 per dollar, compared with Wednesday’s close of 278.30.The rupee fell by eight paisas to settle at 279.67 versus the dollar in the open market.

According to dealers, the rupee experienced some pressure due to increased dollar purchases by importers, particularly oil companies. Demand from importers exceeded inflows from export sales and remittances.

“As June is the last month of the fiscal year, high import payments often put pressure on the rupee during that month,” a currency dealer said.“We expect the rupee to continue to follow a range-bound trading pattern depending on the demand and supply of dollars in the market,” the dealer added.

Currency dealers also think that the monetary policy and budget announcement outcomes will impact the currency’s direction in the future. Market players are likely to take a wait-and-see stance.

Their responses will likely be influenced by the monetary policy decision made by Pakistan’s central bank next week as well as the economic policies and targets that the government will be announcing in the upcoming budget, according to dealers.