Rupee at new lows; may lose more vs dollar

KARACHI (Reuters) - The Pakistani rupee fell to a new intraday low against the dollar on Monday but recovered slightly to end firmer than Saturdays close, and dealers said it was expected to remain under pressure for now. The rupee closed at 85.01/11 to the dollar, after falling to a record low of 85.15 during the day, amid strong demand for the dollar to pay for imports, especially oil. On Saturday, the rupee hit 85.08 to the dollar before closing at 85.05/10. There were a lot of payments in the market and that is why banks bought dollars aggressively, said a dealer at a foreign bank. I think the rupee has already set new levels and though it may gain a few paisas in coming weeks, it is unlikely to firm past 84.75 soon. The rupee had firmed in recent days due to less payment pressure and easing international oil prices. But payment pressures generally rise around month-end, which again led the rupee to weaken. Dealers estimated import payments worth up to $150 million were made on Monday. The SBPs verbal intervention in the market also helped a slight recovery in the rupee, dealers said. I think the rupee will ease a bit more in the next week or so, said a brokerage house dealer. In the money market, short-term rates eased marginally but dealers said they were expected to remain rangebound this week in the absence of any major cash inflows. Overnight call rates ended at around 12.0 percent, compared with Saturdays close of 12.25 percent. There are no major cash inflows before Saturday, so it is unlikely that rates will ease much, said a brokerage house dealer.

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