*KARACHI – **In an unprecedented move, Pakistan Rupee may hit low of Rs 145against US dollar, Media Report has revealed.*
The Pakistani rupee has maintained a gradual uptrend against the US dollarsince the beginning of current fiscal year in July and is anticipated togain more ground in the remaining eight months amid expectations ofincrease in foreign currency inflows.
The rupee gradually strengthened Rs4.16 or 2.60% in the past around fourmonths to Rs155.88 to the US dollar in the inter-bank market on Friday,according to the State Bank of Pakistan (SBP).
“The rupee may recover to 145 to the greenback by June 30, 2020,” ForexAssociation of Pakistan (FAP) President Malik Bostan projected whiletalking to The Express Tribune.
“A notable drop in the demand for dollars due to reduction in imports and asurge in the rate of return on banks’ fixed deposit schemes caused anincrease in the supply of dollars in the market and helped strengthen therupee in the past four months,” he said.
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Elaborating, he said domestic investors had relocated their investment intorupee-based fixed deposit schemes from investment in dollars after the rateof return on the schemes increased to around 13-14% per annum compared toaround 7-8% about two years ago.
The situation pushed local investors to sell dollars at the currencydealers’ counters, which increased the supply of dollars.
