Rupee expected to remain range-bound next week

Shahnawaz AkhterWeb Editor

26th Jun, 2021. 04:57 pm
rupee

KARACHI: The rupee/dollar parity is likely to move range-bound next week, owing to the demand for import and corporate payments, besides inflows of export receipts and workers remittances.

The currency experts said that the exchange rate would depend on the demand for import and corporate payments. Usually, by the end of the fiscal year, the interbank foreign exchange market witnessed heavy demand for the greenback, as foreign companies repatriate their year-end or quarter-end profits to their parent companies abroad, they added.

Further, after the finalisation of the budget the demand for import payments would also increase, as importers had to hold their positions on the expected changes in the budget.

The statistics of balance of payments show that the current account for 11 months of the current fiscal year remained in surplus; however, the balance of payments showed a current account deficit of $632 million in May 2021, compared with a surplus of $329 million in the same month of the last year.

The experts said that the inflows of workers’ remittances and export receipts might help the local currency make gains. The exports of the country registered 14 per cent increase to $22.57 billion during July–May 2020/21, compared with $19.79 billion in the corresponding months of the last fiscal year.

Similarly, the country received record remittances of $26.737 billion during July-May 2020/21, compared with $20.658 billion in the corresponding months of the last fiscal year.

The rupee witnessed a decline of 11 paisas against the dollar during the ongoing week (June 21 to June 25) and closed at Rs157.62 on Friday.

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