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Rupee weakens

Business

June 3, 2020

KARACHI: The rupee ended lower for the fourth consecutive session on Tuesday because of the prevailing high dollar demand from importers, dealers said.

The local unit closed at 164.89 against the greenback, compared with the Monday’s closing of 164.08 in the interbank foreign exchange market.

The pair fell 2.46 percent, or Re4, against the greenback during the past four sessions.

Falling reserves, coupled with import payments, debt servicing and limited dollar inflows from workers’ remittances and exports, continue to exert pressure on the local unit in the recent days.

In the open market, the rupee lost Rs1.20 to end at 165.20 versus the dollar.

Dealers said the rupee fell, as importers stepped up dollar buying to make payments after the lifting of the coronavirus lockdown in Pakistan and many parts of the world.

“This high demand added pressure on the rupee,” a foreign exchange dealer with a commercial bank said.

“A lack of export conversions and slowdown in the remittance inflows post-Ramazan and Eid season also weighing down on the local unit,” he added.

Dealers said the strong growth in remittances was shielding the currency from sharp falls. However, it might not last for much longer in the wake of the coronavirus crisis.