The Pakistani Rupee is continuing its rise against the U.S. dollar, on Tuesday, as the value of dollar declines below Rs 100. The forex.pk website reported that the open market rates for the greenback were Rs. 99.90 in buying and Rs100.45 in selling. Inner bank rates, on the other hand, declined to Rs 99.50 in buying and Rs 99.70 in selling.
Pakistani Rupee continuing the trend
The recent trends indicate the value of the rupee has depreciated by 0.99% from Monday and dropped 5.64% since January. The inter-bank trading dropped 2.64% from yesterday and a 5.23% fall from the last month.
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Following the previous day trading in the currency markets, news daily Dawn, citing some inter-bank dealers, reported that the rupee would appreciate further on Tuesday, and the dollar would decline to around the Rs100-level.
“Everyone wants to sell their dollars now. Not many are buying. This trend will continue as of now,” a leading Islamabad-based exchange firm owner told Business Standard. He bought one US dollar at Rs 100 yesterday, which was lower than the interbank rate of Rs 101 at that time.
Pakistani Rupee – Forex reserves satisfactory
The market has been changing after the inflow of investment in fiscal year 2013-14. The State Bank of Pakistan stated that the country received foreign direct investment of USD 523 million in the first seven months of 2013-14, and USD 106.9 million in January alone.
A rise in the value of rupee would suppress inflation, but will make exports less competitive. Finance minister Ishaq Dhar, in a statement last evening, said he expects the rupee-dollar parity to come down to Rs 98, and the government has taken substantial measures to enhance the overall external position by ensuring substantial capital and financial inflows, in the country.
Pakistan has seen better forex reserves in the previous month as it received larger inflows from multilateral and bilateral resources, along with forex flows through capital markets and better home remittances.
Dhar said that the government is satisfied with the forex reserves of the country, which surged from USD 7.59 billion as on February 7, 2014 to USD 9.37 billion as on March 7, 2014. He said that the first half of FY 2014 saw some decline in foreign exchange reserves due to the timing of large debt repayments and some speculative tendencies putting pressure on the value of the Pakistani Rupee.