Rupee ends weaker against dollar

KARACHI: The Pakistani rupee continued to weaken on Wednesday, weighed down by increased demand for US dollars from importers, traders said.

The rupee closed at 277.96 against the dollar, down from its close of 277.84 in the previous session. Traders said the local unit posted more losses due to importers’ dollar demand for month-end payments. They added that inflows from exporter conversions and remittances were insufficient to meet the market demand.

The rupee dropped somewhat in the open market, closing at 278.97 to the dollar from 278.9 the day before.As political protests and the related disturbance have subsided, traders anticipate that the rupee will stay steady in the sessions to come. At least temporarily, this will eliminate the prevailing uncertainty, allowing market participants to return their attention to the current state of the economy.

Pakistan’s macroeconomic indicators have improved in recent months due to the $7 billion International Monetary Fund loan programme, a current account surplus, a steady increase in foreign exchange reserves, and improvements in rating.