![]() ![]() ![]() The greenback has appreciated 7.15pc since the middle of May On Thursday, the dollar closed at Rs164.1. Then it had been depreciating after achieving its highest level of Rs168 in August last year. The dollar was at Rs164.1 on October 6 last year. The dollar has been appreciating against the rupee since May because of a number of reasons, including the higher current account deficit and import bills.Įach month of the second half of the financial year FY21 witnessed a current account deficit but it remained in surplus due to the achievement of the first half till the end of 11 months of the same year - only the June deficit pushed the entire year’s (FY21) surplus into a deficit of 0.6 per cent of GDP. Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.KARACHI: The US dollar on Thursday hit a 10-month high, crossing the Rs164 mark. ![]() Until the coronavirus pandemic is there, buying will remain at the lowest level,” he said. “Pakistanis buy dollars for all the purposes I identified. He said the dollar was used by Pakistanis going for Umrah and travelling as well as paying for education and healthcare expenses. “We are selling over 90 per cent dollars of open market to banks since buyers are not available,” said Zafar Paracha, former general secretary of Exchange Companies Association of Pakistan. Samiullah Tariq, head of research at Pak-Kuwait Investment Company, believes the dollar will further depreciate to Rs152.īankers, analysts and currency dealers said that along with higher inflows, the main reasons for depreciation of the US dollar against the rupee were the current account surplus and very low public consumption which kept the reserves high. “These inflows are in the pipeline but are enough to influence the currency market sentiment and will keep the rupee on the higher side in the coming weeks,” he said. “The inflows - as approved by the IMF, the World Bank and the Asian Development Bank - have created a positive sentiment for the local currency which means the dollar would have to lose more in the coming weeks,” said Atif Ahmed, a currency dealer in the interbank market. The financial sector believes that the rupee is not gaining because of economic strength behind it but due to higher inflows of dollars and reduced demand for the currency in both the interbank and open market. The falling dollar prices have initiated a new debate in the financial sector and among currency experts, who are questioning how long the appreciating local currency will sustain against the greenback. Yesterday, currency dealers in the interbank market said the dollar had lost 95 paisas and was traded at Rs153, closing at Rs153.09, close to the price available on June 13, 2019, at Rs152.90. In such a situation, institutions and corporate players should avoid speculation & book their transactions according to their needs."įurther, 10-day volatility increased from 2.02 per cent on March 1, to 4.1pc as of yesterday. The market may take some time to stabilise. He said, "Keep in mind that we are heading for a choppy day. The lowest trade reported so far today was at Rs151.75.Īsad Rizvi, former treasury head of Chase Manhattan bank, commented on the rupee's appreciation amid inflows from the IMF via his Twitter handle. Tuesday’s closing rate was Rs153.09 while the dollar was being quoted at Rs152.60 during early trade at interbank today after having opened at Rs152.50.Įarlier today, the dollar hit a 22-month low of Rs151.50, last seen on June 11, 2019, before rebounding. The upsurge of the rupee against the US dollar continued on Wednesday with the local currency gaining 49 paisa compared to the previous close on the back of $499 million inflows from the International Monetary Fund (IMF) and a Eurobond issue of $2.5 billion.
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