KARACHI: The rupee extended losses for a second consecutive session in the interbank market on Wednesday.

The rupee closed at 279.87 to the dollar, down from 279.77 in the previous session. The rupee also lost ground in the open market and traded at 281.3 per dollar, compared with 281.23 on Tuesday.

Dealers said that the local currency slightly declined due to increased dollar demand from importers and limited dollar selling from exporters. However, the rupee is expected to trade within a narrow range in the coming sessions. Attention is focused on the ongoing International Monetary Fund’s (IMF) review, as market participants are closely watching whether the first review will be approved despite a significant shortfall in tax revenue.

Nonetheless, Bloomberg reported on Tuesday that Pakistan is likely to clear the review since measures to enhance taxation are already being implemented. All requirements for the first review have been satisfied.

“On the global front, economic activity remains dynamic, with the US imposing tariffs on various countries, prompting retaliatory actions. Meanwhile, following OPEC+’s announcement to increase fuel output, oil prices have dropped below $70 per barrel — a positive development for Pakistan’s economy. Additionally, other key commodities, including coal, are also experiencing a downward trend,” said Chase Securities in a note.