Strong inflows may keep rupee stable next week

Shahnawaz AkhterWeb Editor

12th Jun, 2021. 05:07 pm
Rupee Stable Next Week

KARACHI: Inflows of workers’ remittances and export receipts may help the rupee remain stable next week, despite higher demand for import and corporate payments.

The remittances grew to a record high of $26.7 billion during the first 11 months (July-May) 2020/2021, compared with $20.66 billion in the same period of the last fiscal year, showing an increase of 29.4 per cent.

Similarly, export receipts rose 14 per cent to $22.56 billion during the first 11 months of the current fiscal year, compared with $19.79 billion in the corresponding months of the last fiscal year.

Besides, the foreign exchange reserves of the country increased $284 million to $23.578 billion by the week ended on June 4.

However, the local currency may witness pressure next week, owing to the fiscal year-end demand for the greenback for import and corporate payments.

The importers were cautious during the last couple of weeks in purchasing the foreign currency on the budget announcement. As the budget 2021/22 announced on June 11, the importers would make new orders to their foreign suppliers.

Similarly, foreign companies operating in Pakistan may also increase their demand for the dollar to repatriate their profits and dividends for the fiscal year ending June 30.

Currency experts believed with the ease in the restrictions related to the coronavirus pandemic, the domestic demand would rise, which would increase the pressure for imported goods. This may increase the demand for the foreign currency.

The rupee lost 43 paisas against the dollar during the week June 7-11. The exchange rate was recorded at Rs155.92 against the dollar during the week. However, the exchange rate ended the week at Rs155.74 versus the dollar.

Adsense 300 x 250