In a positive development, Pakistan Rupee may fall below Rs. 150 mark against US dollar
KARACHI: In a positive development, Pakistan Rupee may fall below Rs. 150 mark against US dollar.
Pakistani rupee is strongly expected to maintain its uptrend in the short run and peak out at around 150 to the US dollar over the next three to four months, which will provide an opportunity to the central bank to build the country’s foreign currency reserves by absorbing excess supply of the greenback in the market.
An economist at a leading bank, a currency dealer and a textile exporter, in different conversations, told The Express Tribune that the continuously strengthening rupee would peak out at around 150 to the US dollar by the end of March 2020.
Later, the rupee is anticipated to return to its depreciation phase around the fourth quarter (April-June) of the current fiscal year. “The rupee may return to 164-165 by the end of FY20,” the economist said on condition of anonymity.
So far, the rupee has regained 5.52% of its value or Rs9.07 in around past six months to 154.98 to the greenback on Thursday compared to the all-time low close of 164.05 in the inter-bank market on June 27, 2019, according to the State Bank of Pakistan (SBP).
“The recovery of the rupee came following a significant increase in the supply of dollars in the market and drop in demand amid a notable reduction in imports, improvement in exports and steady inflow of worker remittances,” the economist said.