Rupee Currency has appreciated by Rs 1.4 against the dollar since the beginning of February. The rupee appreciated by Rs 0.25 against the US dollar in the inter bank market on Friday and closed at a three-month high of Rs 158.82. According to the State Bank of Pakistan, it closed at Rs 159.07 against the US Dollar on Thursday.
Rupee appreciation reasons
Overall, since February 1, 2021, the rupee has appreciated by 1.4 or 0.88%. Now, the dollar reached where it was in last November 2020. Increased oil and gas imports through Pakistan from November 2020 to meet the fuel needs of citizens and industrialists during the winter put pressure on the rupee and caused to increase the dollar rate. Now, after the winter season is shrinking the rupee is strengthening.
Role of Key economic indicators in rupee strengthening
In addition, Pakistan’s exports and remittances have remained stable over the past few months, and the improvement in these two economic indicators has strengthened the rupee. To further support the currency, Roshan Digital Account is attracting a small amount of remittances in the form of investments by Pakistanis abroad.
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Future of Rupee
The World Bank and the Asian Development Bank plan to invest a total of 22 billion in Pakistan over the next five years, and the news is particularly helpful in recovering the rupee. The International Monetary Fund is also expected to announce a similar package for Pakistan, which we hope will help the currency to gain more. Pakistan also repaid the frozen G20 loans up to June 2021.
Pakistan saw a significant increase in export orders when the government recently announced some business-friendly measures that kept industries afloat, some of which were already on the stage of closure.
Keeping in view the positive signals, the President of the Forex Association predicted that in the next few weeks, the rupee in the interbank market would reach Rs.155. According to the Forex Association of Pakistan, the rupee remained unchanged in the open market on Friday and closed at Rs 159.2.
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Currency | Rupee | Dollar | Money Market |