KARACHI: The Pakistani rupee started the week with a 0.06 percent gain versus the US dollar, resuming its upward trend.
On Monday, the local currency rose 0.06 percent to Rs175.75 in the interbank market.
According to data issued by the central bank, the Pakistani rupee has depreciated by 11.55 percent (or Rs18.21) since the start of the current fiscal year on July 1, 2021, after showing a fresh gain of 0.06 percent.
For the previous nine months, the rupee has been on a downward trend. In comparison to the all-time high of Rs152.27 in May 2021, it has lost 15.41 percent (or Rs23.48) to date.
The rupee is expected to remain range-bound versus the dollar this week, according to currency dealers, as importer demand for the greenback appears to be in line with inflows.
“We anticipate typical demand from energy and other sector importers, which will be met by supplies from export proceeds and remittances,” says the report “According to a foreign exchange broker.
He also predicted that the rupee would trade in the 175.40-175.90 range in the next sessions. “Given geopolitical uncertainties, however, a large move will be determined by how international commodities prices move,” the trader said.
Traders will be following the outcome of the Financial Action Task Force (FATF) plenary conference in Paris, which runs from February 21 to March 4, for clues about the rupee’s future direction.
The FATF will decide whether Pakistan should be removed from the grey list in the near future.
Foreign exchange volatility is increasing, according to analysts, as the government alternates between dwindling reserves and measures to increase them, putting traders in the crossfire.
“Any hopes for the Prime Minister’s travel to China have been dashed due to a lack of clear promises.” Inflows from multilateral institutions may also take longer than expected, according to a client note from an analyst at Tresmark, a financial market tracking tool.
