The rupee continued on a downward momentum on Friday as it recorded another decline in the interbank foreign exchange market on Friday.

The local unit shed 89 paisas against the dollar which was trading at Rs288.49 at the closing of the interbank market, as against the closing of Rs287.60 the previous day.

The rupee remained under pressure on the back of increased demand for the greenback by the importers, while the foreign exchange reserves also shrank due to debt repayment.

The foreign exchange reserves held by the State Bank of Pakistan declined by $110 million reaching $8.04 billion during the week ended on August 4, compared with $8.15 billion recorded on July, 27,

The central bank attributed the dip to external debt repayment.

The total foreign currency reserves, including those held by commercial banks, came at $13.3 billion, compared with $13.4 billion the previous week.

Meanwhile, the value of the greenback also increased in the open market as it gained Rs1.75 against the rupee. The dollar was trading at Rs296.5 in the open market on Friday.