Rupee slightly weakens against dollar in interbank gains in open market

(Web Desk): In the interbank market, the US dollar initially declined but ended the day with an increase of 11 paisas, closing at Rs282.22. Meanwhile, in the open market, the dollar depreciated by 2 paisas, closing at Rs284.38.

The strengthening of the US dollar globally — following the release of US employment data and concerns about a potential interest rate hike by the Federal Reserve — also impacted the Pakistani rupee.

Due to rising import-driven demand and increasing inflation, there are concerns that the upcoming monetary policy might not bring any further interest rate cuts. As a result, the dollar remained strong against the rupee in the interbank market on Wednesday.

Despite this, the dollar faced downward pressure for most of the trading session amid expectations of new inflows, including the recent approval of an $800 million loan from the Asian Development Bank. At one point, the dollar dropped by 11 paisas to touch Rs282.

However, with improved dollar supply and increased import-related demand by the end of the trading day, the dollar closed up by 11 paisas at Rs282.22 in the interbank market.

On the other hand, in the open currency market, the dollar weakened by 2 paisas and closed at Rs284.38.

It is worth noting that in the final months of the fiscal year, there is typically a gradual increase in the dollar's value due to heightened import activity and rising foreign exchange demand in the economy.