KARACHI: The rupee continues to strengthen against the dollar and has now returned to its pre-Covid level.
During intraday, the rupee is trading at 154.15 as of 1 pm PST after gaining 42 paisas compared to Friday. This is the strongest the rupee has been since February 17, 2020, when the rupee traded at Rs154.16.
“This was the expected support level,” comments Komal Mansoor, senior analyst at Tresmark.
“With a spike in covid cases and speculation of lockdowns, this level may not be sustained and the rupee may bounce back to Rs156-157. However, strong Ramzan Inflows may lend further support pushing the parity to Rs150-152. Moreover, Eurobonds are being floated so that works as a positive for the currency as well,” Mansoor adds.
Pak Kuwait Investment Company Head of Research, Samiullah Tariq, comments, “There are multiple reasons for the gain in the rupee. Generally, inflows are greater than outflows. Exporters are booking forwards, IMF agreement has resumed inflows from FIFs, and reduced outflows because of reduced tourism, hajj and umrah. In addition, AML/KYC has reduced hawala hundi (informal remittance channels) to a great extent making remittances rise significantly. The sustainability of the rupee on this level, however, relies on the Covid situation and oil prices.”
When will this reflect in the prices of imported items in Pakistan? Specially the automobile manufacturers who are ready to raise prices but reluctant to decrease them
It’s rediculous to see people waiting for imported items to get a bit cheaper so they could start importing and buying more and hurting the country economy that is going through such a critical time
Ma bhot garib ho help kro