Rupee falls for second consecutive session

KARACHI: The Pakistani rupee extended losses for the second straight session against the US dollar in the interbank market on Tuesday.

The rupee closed at 277.92 per dollar, slightly down from 277.86 on Monday.The local unit also lost ground in the open market. It was trading at 278.83, compared with 278.77 in the previous session.Dealers said the persistent dollar demand from importers continued to put pressure on the rupee.

Due to a continuous rise in remittances and foreign exchange reserves, dealers expect the rupee will stay stable in the coming session. Nonetheless, market players are keeping an eye on the International Monetary Fund’s (IMF) team discussions with Pakistani officials.

The IMF team is currently in the country, with review meetings regarding the $7 billion loan programme underway.“The initial focus appears to be on assessing tax collection efforts,” said Chase Securities in a note.

“Government representatives have expressed confidence in meeting the tax collection target, asserting that neither a downward revision nor additional measures will be necessary. Instead, the target is expected to be achieved through administrative and enforcement measures,” it added.