Rupee falls against dollar in interbank market

KARACHI: The rupee continued to fall for a third straight session in the interbank market on Thursday on dollar demand and sluggish export conversions, dealers said.

The rupee closed at 278.49 per dollar, slightly down from its previous close of 278.40.“Importers had an appetite for US dollars, but exporters’ reluctance to sell dollars in large volume meant that market inflows could not keep up with the demand. As a result, the local unit was slightly under pressure,” said a currency dealer.

The reports that Pakistan has met all of the International Monetary Fund’s recommendations, which will pave the way for the new loan programme, have elevated market sentiment. The IMF has also commended the rise in gas prices, and the cabinet has recently addressed the increase in electricity tariffs, according to analysts.

In the upcoming sessions, range-bound trading is anticipated for the rupee. They said the arrival of the IMF team next week and the impending release of the monetary policy date are significant market triggers.In the open market, the rupee edged higher against the dollar. It was trading at 280.23 per dollar, compared with 280.25 in the previous session.