Rupee extends losing streak for second consecutive session

KARACHI: The rupee continued to fall for the second consecutive session on Tuesday in the interbank market due to importer demand ahead of the August 14 public holiday, dealers said.

The rupee closed at 278.7 per dollar, compared with Monday’s close of 278.64.According to dealers, there was demand on Tuesday from importers and companies looking to settle their payments, and the local currency continued to incur minor losses. The inflows from exporters and remittances were not sufficient to meet market demand.

Markets will be closed for a public holiday on Wednesday on account of Independence Day.The rupee remained flat in the open market. It settled at 280.4 against the dollar, unchanged from the previous session.

Analysts expect the rupee to stay stable in the short to medium term. The rationale is that by the end of this month, the board of the International Monetary Fund is anticipated to approve Pakistan’s 37-month loan programme.

In addition, the governor of the State Bank of Pakistan reaffirmed that the external position is largely under control. Remittances from Pakistanis employed abroad continue to hover around $3 billion each month. Analysts also believe Pakistan will be able to successfully launch a series of Panda bonds, strengthening its forex position.