Rupee continues to strengthen against US dollar

Rupee continues to strengthen against US dollar

F.P. Report

KARACHI: The ongoing wave of rupee appreciation continued on the last day of the trading week as the currency gained a fresh 0.09% to Rs174.71 against the US dollar in the inter-bank market.

The appreciation came on the back of an improvement in macroeconomic indicators, and an increase in foreign exchange reserves.

A day earlier, the local unit closed at Rs174.87 against the greenback, according to the State Bank of Pakistan (SBP).

Currency dealers believe that the local currency is in its stabilisation phase and the movement will depend on the economic data, particularly trade numbers.

A dealer said: “We expect the local unit to follow a range-bound trading pattern in coming days. Though dollar inflows are healthy, aggressive dollar buying from importers and the corporate sector may result in demand exceeding supplies of the US currency, putting pressure on the local unit.”

With the fresh increase of 0.09%, the Pakistani rupee has depreciated by 10.89% (or Rs17.17) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.

The rupee had maintained a downward trend for the past nine months. It has lost 14.73% (or Rs22.44) to date, compared to the record high of Rs152.27 recorded in May 2021.

Earlier, Pakistan-Kuwait Investment Company’s Head of Research and Development Samiullah Tariq had said: “Rupee is in correction mode.” Tariq had predicted that the Pakistani currency should trade in the range of Rs174-176.

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