Rupee weakens

KARACHI: Rupee closed weaker against dollar on Friday because importers and other companies bought greenback in bulk to meet month-end obligations, dealers said.

The rupee closed at 167.66 per dollar, compared with Thursday’s close of 167.36 in the interbank market.

“We saw a demand from players, who are covering their month-end obligations,” said a foreign exchange dealer. “Businesses and factories have reopened after the government lifted coronavirus lockdown, which is adding to dollar demand pressure,” the dealer added.

Currency dealers said $1.725 billion worth of inflows from multilateral institutions

had prevented the rupee from declining sharply.

The State Bank of Pakistan said the flexible exchange rate had played its vulnerable shock observer role, helping cushion the economy from the tightening of financial conditions associated with capital outflows from the emerging markets and falling global sentiment.

The depreciation in the rupee has been lower than in many other emerging markets, reflecting the increased reserve buffers accumulated over the last year, it noted.

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