Tag Archives: rupee

The rupee may rise further​​ | Instant News

Karachi: Traders said that due to the reduced demand for US dollars from regular buyers and the increase in the inflow of US dollars, the rupee will gain more gains next week.

In addition, the foreign exchange market may react positively to the Financial Action Task Force’s decision to keep Pakistan on the gray list, as this may lay the foundation for closer contact with the International Monetary Fund.

The FATF statement acknowledged that the country’s progress in the action plan may be beneficial to the local currency.

“We expect the rupee to strengthen further in the next few days. We see an increase in the inflow of US dollars from multilateral sources, exports and remittances. On the demand side, demand from the oil sector and other importers has weakened.

“Improvements in the real effective exchange rate (REER) and exporters’ expectations of further appreciation of domestic units in dollar sales are also expected to support the rupee.”

Traders expect the rupee to US dollar exchange rate to fall below 161 next week.

In the past week, the rupee in the inter-bank market has risen by 1.01 rupees to 161.37 rupees per dollar.

Currency traders believe that on the last day of the outgoing week, the supply of U.S. dollars was good and exceeded the demand of importers, so the rupee appreciated against the U.S. dollar.

The World Bank’s board of directors approved the financing of the Punjab Province’s resource improvement and digital effectiveness program of $304 billion, which also boosted the currency.

The current account surplus in September was $73 million, and the surplus in the first quarter of this fiscal year was $792 million.

After three weeks of decline, as of October 16, the country’s foreign exchange reserves increased by US$287 million to US$19.301 billion. These optimistic data helped the rupee to appreciate against the dollar.

Traders said that the country’s foreign exchange reserves and external accounts growth caused the real effective exchange rate to rise to 91.69 (as of August 2020).

These figures show that the rupee underestimates the rupee relative to its main trading partners, but pave the way for further strengthening of the local currency.

However, two factors can only limit dependence on benchmarks. One is external and fiscal sustainability, and the other is that the index only accounts for 11% of the weight.

As long as the regulator maintains its relevance, REER may still be important to traders.

Traders said that although FATF’s statement was neither shocking nor surprising, it gave Islamabad a four-month window to correct 27 remaining six points related to anti-money laundering and terrorist financing deficiencies.


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The rupee rose even further | Instant News

KARACHI: The rupee continues to gain momentum against the dollar on Friday on the back of weak demand for the greenback from importers and healthy inflows, dealers said.

The rupee closed at 164.51 against the dollar, compared with Thursday’s close of 165 on the interbank market. The domestic currency rose 49 paisas during the session.

The rupee has appreciated Rs1.28 against the dollar during the week.

Dealers attributed the increase in the value of the rupee to an increase in the supply of dollars in the market.

“The rupee’s recovery is being watched by inflows in the foreign exchange market,” said a dealer.

“The sources of the inflow were remittances, enthusiastic responses and investments in Roshan Digital Accounts, and Pakistani Naya Certificates from Pakistani non-residents,” the dealer said, adding that a $ 300 million approval from ADB [Asian Development Bank] and favorable export receipts also helped the currency appreciate against the greenback. Dealers expect the rupee to maintain the same levels in the coming week and may trade between 164 and 165 versus the dollar.

On the open market, the rupee has also continued its uptrend, closing at 164.80 against the dollar, compared with an earlier close of 165.70.


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Rupees extend losses | Instant News


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Rupee weakened | Instant News


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The rupee depreciated to 164.89 to the dollar | Instant News


Image of Reuters file.

KARACHI: The Pakistani currency on Tuesday depreciated beyond the awaited level of Rs165 against the US dollar on the interbank market during intra-day trading, but recovered in part to close at a new seven-week low of Rs164.89.

During the day, the rupee hit a low of Rs165.5, down Rs1.42 compared to Monday’s close of Rs164.08. It was the fourth consecutive trading session that saw a rupee depreciation.

Rupee lost ground due to increased demand for the dollar after PM Imran Khan reduced the lock on Monday. Monday night, the government allowed more economic sectors to return to work starting Tuesday.

A few months ago, several research houses anticipated that rupees would trade between Rs165 and Rs170 at the end of June, given the surge in dollar demand and falling supply.

The rupee has cumulatively depreciated Rs3.97 or 2.46% in the last four trading sessions (May 28 – June 2).

Earlier, the currency had recovered to Rs159.65 against the US dollar on May 5. A currency trader on the Wall Street Exchange Company in Karachi said he sold dollars at Rs166 and bought at Rs162 on the open market. The broad spread shows the growing gap between dollar demand and supply.

“However, there are no US dollar buyers and other major foreign currencies nor are there sellers at public transaction counters,” the dealer said.

Published in The Express Tribune, 3 Junerd, 2020.

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