Rupee declines

KARACHI: The rupee extended losses for the second consecutive session on Tuesday because of the prevailing high demand from importers, dealers said.

In the interbank market, the rupee closed at 159.54 against the dollar, down from 159.27 on Monday. It lost 0.17 percent against the dollar.

In the open market, the rupee ended at 159.60 to the dollar, compared with 159.50 in the previous session.

“Increased dollar demand from importers caused the rupee to fall its value against the dollar in the last two sessions,” a currency dealer said.

“There were some import payments, which pushed the rupee lower. However, supplies were not enough to meet the demand.”

Dealers expect the local currency to trade at the 159 level in the sessions ahead, as it looks to be strong support at least for this month.

The local unit had been trading at 159 levels until last week, and it unexpectedly breached this support, closing at 158.82 on Friday due to increased inflows and thin importer demand.