KARACHI, April 7: The Pakistani rupee ended slightly weaker on Monday as banks stepped up their dollar purchases to cover corporate debt and trade payments, dealers said.

The dollar closed at Rs57.80 on the interbank market, up from Rs57.77 on Friday. “There was good demand out there from companies which kept the dollar steady,” said a dealer at a foreign bank. The market also noticed with interest how an expanding trade deficit will impact the currency in the months ahead. Surging foreign exchange remittances from Pakistanis working abroad has been a key factor behind the strengthening of the currency since late 2001.

In the money markets, the overnight rate eased to 5.5 from 7.4 per cent on Friday.

A dealer at a European bank said the market is also awaiting an inflow of funds from a special export refinance scheme.—Dow Jones Newswires