Rupee declines

The rupee continued to trade weaker against the dollar on Monday, amid surge in dollar demand from importers, dealers said.

The rupee closed at 124.24 against the dollar, compared with the previous closing of 124.04 in the interbank market. Dealers said high demand for the dollar kept pressure on the local unit during the day. “Dollar demand is high, as importers have covered their payments ahead of Eid holidays,” a currency dealer said. The currency market will remain closed from August 21 to 23 on the occasion of Eid-ul-Azha. Dealers see the domestic currency to remain under pressure after Eid. “The rupee could trade at 125 in the weeks ahead,” the dealer added. In the open market, the rupee closed at 123 against the dollar. It ended at 122.60 in the previous trade.