Pak Rupee Hit The Highest Level Against US Dollar. The Pakistani rupee is expected to maintain its uptrend over the next few months, going up to 150 against the US dollar.
The increase would result in the foreign currency reserves of the country being created by captivating the market’s surplus banknote.
A textile exporter claimed Pakistani rupee would reach about 150 per US dollar by the end of March 2020.
The rupee is likely to return to its declining phase around the fourth quarter (April-June) of the current economic year.
“By the end of FY20, the rupee may return to 164-165,” the economist said on anonymity condition.
The rupee has recovered 5.52 percent of its value so far, according to SBP. Nonetheless, Rs9.07 has been on the banknote in the past six months to 154.98.
“The recovery of the rupee came as a result of a significant increase in the market supply of dollars and a drop in demand in the midst of a significant reduction in imports, a rise in exports and a steady inflow of workers ‘ remittances,” the Economist said.
SBP’s trade-market dollar growth played an important role in Pakistani rupee growth.
Since July, a foreign asset of over $1.2 billion in government sovereign papers, mostly Treasury bills, the regular return of foreign investors to the supply market and enhancement of foreign direct investment (FDI) in oil and gas exploration, power and agriculture also increased dollar supply and in turn reinforced the rupee.
To remember, a key change to the rupee-dollar exchange rate regime was made in May by the central bank.
Previously, various governments permitted the rupee to depreciate a massive 55.5 percent to an all-time low from December 2017 to June 2019. News report on Pak Rupee Hit The Highest Level Against US Dollar.