Rupee ends weaker

KARACHI: The rupee weakened on Monday, closing at 280.86 versus the dollar in the interbank market, compared with the prior close of 280.71.

In the open market, the rupee also declined. It traded at 282.33 per dollar, down from 282.27 in the previous session.“Today, we have seen some demand coming from importers. There was dollar selling from exporters, but the importer demand surpassed these inflows,” said a currency dealer.

Analysts expect the rupee to remain trade range-bound this week due to a record monthly high current account surplus, the depreciation of the US dollar against other major currencies, and the country’s credit rating upgrade.

Pakistan posted an all-time high $1.2 billion current account surplus in March. Analysts anticipate a total surplus of $1.5 billion for the entire fiscal year, a milestone not seen in over two decades. This is likely to support the local currency.

The dollar index has lost 10 per cent since January, and it is poised to drop further. For now, this gives the emerging market currencies like the rupee some breathing room. But a falling dollar also means higher commodity prices -- oil, metals, grains -- and that brings imported inflation right back through the door, according to analysts.