Rupee marginally falls against dollar

KARACHI: The Pakistani rupee ended slightly weaker against the US dollar in the interbank market on Tuesday.The rupee closed at 277.84 per dollar, compared with its previous closing value of 277.75.

The local currency also declined in the open market, trading at 278.9 to the dollar, down from 278.79 in the previous session.

Dealers said the rupee lost ground against the dollar due to dollar demand from importers and ongoing political uncertainty.“The latest political developments have introduced a layer of uncertainty, leaving investors apprehensive about the future,” said Chase Securities in a note.

“Conflicting information continues to cloud the outlook, with social media reports indicating instances of violence during protests, while government sources assert that the situation is under control. Unless clarity emerges, these dynamics are likely to keep market sentiment cautious,” it added.

However, the rupee is expected to remain stable against the dollar next week, driven by healthy supplies from increased foreign exchange reserves and remittances.Traders anticipate that the rupee will continue to trade within its current ranges in the coming sessions because the market’s sufficient dollar liquidity, bolstered by a steady increase in foreign exchange reserves and stronger remittances, appears to be meeting importer demand.