Rupee almost 177 per dollar

KARACHI: The rupee weakened further against the US dollar on Wednesday on increased dollar demand from importers for payments, dealers said.

The local unit ended at 176.98 to the dollar, compared with Tuesday’s close of 176.72 in the interbank market. It lost 26 paisas or 0.15 percent.

“The demand from importers remained up, especially for oil purchases, while supplies were not enough to meet the demand,” said a foreign exchange dealer.

“The recent rise in oil prices also affected sentiment as this could lead to higher import bill and current account deficit, putting further pressure on the rupee,” he added.

Oil prices rose to a seven-year high close to $90 a barrel amid tight supply and geopolitical tensions in Europe and the Middle East.

Traders are watching whether the domestic currency will breach the 176 level or sustain it in the days ahead. Traders and the investors were worried about the delay in the approval of the sixth review of the $6 billion International Monetary Fund (IMF) loan programme.

The executive board of the IMF will now meet on February 2 for considering Pakistan's request to clear the sixth review under the Extended Fund Facility. Analysts said the delay by the IMF is due to Pakistan’s request as the State Bank of Pakistan Amendment Bill 2021 is yet to be passed from the Senate. The rupee ended unchanged at 179.50 per dollar in the open market.