Currency update on Jan 26: Rupee strengthens against US dollar

• The buying rate of the US dollar was Rs160.5, while its selling rate was Rs161.2
  
• On Monday, the rupee ended marginally weaker against the dollar in the interbank market due to importers’ dollar demand for payments.
  
• Dealers expected the local unit would lose more value against the greenback in the coming sessions.
  

KARACHI: The buying rate of the US dollar was Rs160.5, while its selling rate was Rs161.2 on Tuesday, January 26 at the opening of the currency market.

On Monday, the rupee ended marginally weaker against the dollar in the interbank market due to importers’ dollar demand for payments.

“The rupee remained under pressure in the last week, owing to the sustained high dollar demand in the market,” the currency dealer said. “We saw importers buying dollars to settle their payments,” the dealer added.

Dealers expected the local unit would lose more value against the greenback in the coming sessions, as payment obligations build up pressure on the exchange rate. “The rupee may trade in the band of 160.90 to 161.30 this week if inflows are not enough to meet the market demand,” another dealer said.

Read more: January 2021: Pakistani rupee likely to weaken against US dollar coming week

Meanwhile, the following were the rates of the US Dollar, Saudi Riyal, UK Pound, the UAE's Dirham, and other foreign currencies in the open market.

The information has been obtained from the Forex Association of Pakistan.