The Exchange Companies Association predicts that the US dollar will depreciate further to a low of Rs 155 in the coming days.
According to private TV, the issuance of 2 billion worth of sukuk virobonds by the government in February 2021 and rising remittances further depreciated the dollar last week and the rupee continued to depreciate against the dollar in both the foreign exchange markets last week. Later, the value of the dollar in the interbank market fell to a six-month low. In the interbank and open market, the value of the dollar has dropped below 160, The dollar is expected to depreciate further to a low of Rs 155.
Malik Bostan said that due to the strict measures taken by the government of Pakistan to meet the requirements of the Financial Action Task Force, the business of hawala and hindi has come to an end, as a result of which remittances from foreign countries through legal channels have increased. That is why remittance inflows on a monthly basis have exceeded 2 billion over the past four months and supply in local markets has outpaced demand for the dollar, causing the dollar to depreciate.
The dollar continued to depreciate despite the opening of import LCs during the last week. The dollar depreciated last week but the euro and the pound appreciated. During the week, the dollar traded at Rs 1.16 in the interbank market. It closed at Rs 159.09, while in the open market, the dollar lost Rs 1.10 to close at Rs 159.30.
In the interbank market, the euro rose 49 paise to Rs 188.44, while in the open market, the euro rose 50 paise to Rs 188.50, while in the interbank market, the British pound rose 85 paise to Rs 209. In the open currency market, on the other hand, the British pound remained unchanged at Rs 208.50.
