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Rupee on the rise against US dollar

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KARACHI: Rupee saw a spike against the US dollar by 42 paisas in the inter-bank market, on Friday, what currency experts forecast that a downward trend would keep going and the currency would soon attain the pre-covid levels.

The dollar traded at Rs154.50 in the day and closed at Rs154.59 compared to the closure at Rs155.01 just a day before.

The greenback, since August 2020, has depreciated by 7.5 percent against the rupee.

Market experts offer various reasons including higher inflows and lower outflows as reflected by the current account surplus during the first eight months of the current financial year.

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However, currency dealers of the inter-bank market said the cause of the depreciation of the US dollar was due to the demand for dollars had slowed down from importers.

“At the same time, the exporters have been giving away their dollar holdings in quite large numbers that have reduced prices and created space for the Pakistani rupee to acquire more against the greenback,” said a currency dealer, Friday, in the inter-bank market.

Experts say that it is difficult to examine how far the dollar would go down but are hopeful that the coming months would bring more inflows and more depreciation. It is pertinent to mention that during Ramazan and Eid seasons, overseas Pakistanis send money to their families and give hefty Zakat donations to various charity organizations.

Forex Association of Pakistan’s president Malik Bostan said “The dollar buying has touched the lowest levels in the open market and now we have to deposit way more than 90 percent of dollars that we buy from the customers in banks,”.

Market experts also link this rise trend of the Pakistani currency with the surge in construction activities across the country. 

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