Pak rupee nears highest in a month

dubai — The Pakistani rupee hit an almost one-month high against the US dollar by appreciating its value to 159.5 (43.46 versus the dirham) in the open market on Wednesday.

The currency continued its ascent against the greenback and appreciated by Rs1.62; it is trading at 159.5 against the dollar, according to forex dealers.

“The rupee has continued its ascent and has reached 159.5 versus the US dollar, which is the highest level since March 24, 2020. It declined to a level of 167.9 [45.74 versus the UAE dirham] against the greenback on April 7,” Samiullah Tariq, head of research at Karachibased Arif Habib Limited, told Khaleej Times.

He said the currency has appreciated by 5 per cent or Rs8.4 against the US dollar [2.28 versus the dirham] since April 7. However, in the interbank market, the rupee appreciated to 160.36 versus the dollar compared to its 161.12 closing on Tuesday.

The rupee registered a Rs3.57 appreciation in its value against the US dollar in the interbank market on Friday.

Currency dealers said demand for US dollars is at the lowest level these days.

“There are only few buyers for the US currency in the open market or in the interbank market,” they said.

Tariq said the rupee outlook is stable to positive in the next four months due to encouraging economic indicators and higher inflows from the International Monetary Fund and other multinational lenders.

“The trade deficit is expected to sustain the $1 billion level in the next three months compared to $2 billion on average in the past nine months. The current account deficit will turn into a surplus, external debts are going to be rescheduled and more portfolio investment is expected in the next quarter,” he said.

Moreover, Tariq said Pakistan will get the advantage of lower oil prices and sustained economic slowdown despite lower exports and remittances in the wake of the global coronavirus outbreak.