Rupee likely to strengthen next week on foreign inflows

Shahnawaz AkhterWeb Editor

10th Jul, 2021. 04:37 pm
Rupees to Dollars

KARACHI: The rupee is expected to make gains next week, owing to substantial inflows of external financing and expected transfers of money from international bond auctions.

However, import payments may escalate demand for the foreign currency and depress the rupee value during the next week.

The foreign exchange reserves of the country were recorded at an all-time high at $24.41 billion by the week ended July 2, 2021, according to the figures released by the State Bank of Pakistan (SBP) on July 8, 2021.

The foreign exchange reserves increased due to inflows of $1 billion from China and another $440 million from the world received under the external debt.

The central bank received another $1 billion from the auction of international sovereign bonds floated by the government of Pakistan.

Further, the exports of the country also registered a growth of 68.36 per cent to $2.69 billion in June 2021, compared with $1.59 billion in the same month of the last year.

The value of the local currency may come under pressure, as imports also registered an increase of 70 per cent to $6.28 billion in June 2021, compared with $3.7 billion in the same month of the last year.

Besides, the scheduled external payments may also put pressure on the rupee value next week.

During the outgoing week (July 5-July 9), the rupee weakened 99 paisas against the dollar. The local unit initiated at Rs158.18 against the dollar on July 5, 2021 to end the week on July 9, 2021 at Rs159.17 in the interbank foreign exchange market.

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