KARACHI: The Pakistani Rupee (PKR) further appreciated against the US dollar on Monday, closing at Rs 154.00 buying and Rs 154.10 for selling in the interbank market.
According to the Pakistan Forex Association (PFA), the rupee is strengthening against the dollar as we receive higher inflows through Roshan Digital Accounts. Simultaneously, there is no demand for the greenback in the interbank market following high exports and low imports.
In the open currency market, the dollar is being purchased at Rs 154.20 and sold at Rs 154.40, the association said.
Malik Bostan, President of PFA, said that the dollar might further shrink to Rs 150 to Rs 152 in the coming days as the remittances would increase in the month of Ramazan. The central bank has not yet received the $500 million payment from the International Monetary Fund (IMF). When such an amount would receive, the dollar will further depreciate against the rupee.
However, the open currency market will follow the Interbank rates. The dollar rate fell by Rs 4 or 2.4% during March from Rs 158.10.
“When the market behaves this way, the selling begins, which further puts the dollar under pressure. The same thing happens when the market expects the dollar to rise, people start buying, and subsequently, dollar rate increases.”
Head of Research at BMA Capital Faizan Ahmed, in their report, also said that he sees the dollar fluctuating between Rs 152 and Rs 155. “The market was expecting that current account deficit would be high in February, something around $500 million, but it actually came out at only $50 million. It also played a role in the falling rates of dollar recently,” Ahmed said.