KARACHI: The rupee closed slightly lower on Monday as inflows of remittances and selling of the US currency by exporters pushed the local currency to end at 178.17 per dollar in the interbank market.
The rupee also lost ground in the open market due to weak supplies, closing at 181.20 per dollar, 1.30 rupees lower from Friday’s close of 179.90. According to dealers, demand for dollars from importers has exceeded inflows of remittances and exporters have also been seen selling the US currency.
“There was a demand for dollars from importers, especially from the energy sector. Usually the appetite for the greenback increases at the end of each month as importers and businesses make their payments, ”said a forex trader.
The flows from remittances and exporters were not sufficient to meet market demand, he added. Traders expect the rupee to trade within a limited range this week, but the currency’s near-term outlook depends on the completion of the sixth review of the IMF’s $ 6 billion lending program (Fund International Monetary) next month.
The Board of Directors of the Fund will approve the disbursement of a tranche of $ 1 billion under the extended financing facility for Pakistan if the government succeeds in complying with the prior measures, namely parliamentary approval of two projects of important law; The Tax Laws Bill (Fourth) and the Self-Government Bill of the State Bank of Pakistan. The relaunch of the IMF’s stalled program should unlock funding from other multilateral lenders and provide local currency support.