Rupee may remain stable next week

Shahnawaz AkhterWeb Editor

17th Jul, 2021. 04:37 pm
Rupee do

KARACHI: The rupee may remain stable next week as the government is contemplating strict imposition of SOPs to contain coronavirus spread.

These SOPs may convert into lockdown in areas with a high number of Covid-19 cases. The Sindh government had already started imposing smart lockdowns in many localities.

The business community feared that the imposition of lockdown would result in closure of business activities once again, adding that the halt in economic activities might also result in discouraging import of raw materials and other finished products.

The fourth wave of coronavirus may discourage importers to place fresh orders to their foreign sellers.

However, due to the Eid holidays next week, the importers might place orders in advance that is expected to increase the demand for the foreign currency.

The local currency might make gains next week, owing to inflows of home remittances and export receipts.

The inflows of workers’ remittances recorded an all-time high in the fiscal year 2020/21.The State Bank of Pakistan (SBP) said the remittances rose to a historic annual high of $29.4 billion. This has helped improve the country’s external sector position, despite the challenging global economic conditions last year.

The remittances registered a substantial 27 per cent growth in FY21 over the last year, the fastest rate of expansion since FY03.

The rupee ended at Rs154.94 against the greenback on Friday from the previous day’s closing of Rs159.30 in the interbank foreign exchange market.

 

Adsense 300 x 250