Rupee weakens

KARACHI: The rupee ended down by six paisas against the dollar on Monday due to demand for the foreign currency for import and corporate payments.

The rupee ended at Rs160.38 against the dollar from the previous closing of Rs160.32 in interbank foreign exchange market on December 24.

In the open market, the buying and selling of the dollar remained at Rs160.30/Rs160.65, compared with the previous closing of Rs160.40/Rs160.70.

Currency dealers said the market opened after three days’ closure, including a public holiday on account of Quaid-e-Azam Day and two weekly holidays.

The market opened with high demand for foreign currency for import and corporate payments, they said, adding that the market had witnessed dollar supply in the shape of workers’ remittances and export receipts. However, the inflows were not sufficient to meet the payment demand.

Currency experts said the positive economic indicators would help the local unit improve value in the coming days, especially the balance of payment, which posted a surplus in the first five months of the current fiscal year.

The balance of payment posted $1.64 billion as the current account surplus during the first five months of the current fiscal year, compared with the current account deficit of $1.74 billion in the same months of the last fiscal year.