Rupee declines for second straight session

KARACHI: The rupee posted more losses on Tuesday due to increased dollar demand from importers related to month-end payments.

The rupee ended at 277.74 against the US dollar in the interbank market, down six paisas from its previous session’s close of 277.68.

Dealers said that since demand for US dollars is often higher towards the end of the month, importers were observed purchasing dollars.

Inflows from exporter conversions were insufficient to accommodate that need, the dealers added.

Despite these minor swings, dealers anticipate that the local unit will remain stable in the coming sessions.

The rupee also fell in the open market. It was trading at 277.66 for selling versus the greenback, compared with 277.63 on Monday.

According to Governor of the State Bank of Pakistan Jameel Ahmad, Pakistan’s external account has significantly improved over the past year, despite challenging conditions.

Speaking to representatives of international rating agencies and international investors last week

on the sidelines of the IMF-World Bank annual meetings in Washington, Ahmad said that despite a sharp rise in imports, especially non-oil imports, and the normalisation of foreign investors’ profit/dividend repatriation, the external current deficit has shrunk considerably and is still within manageable bounds.

Data issued by the SBP showed on Monday that the repatriation of profits and dividends from foreign investments in Pakistan increased by 85 per cent to $393.4 million in the first quarter of the current fiscal year.