Rupee Surges Against Dollar

Rupee Surges Against Dollar

The rupee has surged against the dollar in the inter-bank and open market in the present week majorly owing to the strong foreign inflows, while the positive macroeconomic indicators also assisted in the appreciation of the currency, as per the reports of local media on Sunday.

The rupee closed at 155.28 against the greenback on Monday and closed at 155.06 on Friday.

In the open market, the rupee has gained 25 paisa to close at 155.10 against the dollar.

The currency dealers expect the rupee to gain further over the span of next week. He said that they saw surged inflows in the last few days. A positive economic outlook followed by the lower present account deficit and a stable foreign exchange reserves has added to the strengthening of the rupee.

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He added that they anticipate that the rupee would further be rising in the coming days and the next level is 154.50.

The surged inflows have alleviated the supply of the greenback in the market, adding gains to the local unit.

The present week has seen positive developments on the economic front, with Moody upgrading the outlook of Pakistan from negative to stable along with the improving rating of the 5 significant banks.

Moody said that the change in the outlook to stable is driven by the expectations that the balance of payments dynamics would continue for improving, supported by policy adjustments and present flexibility.

The rating agency said that such developments might reduce the external vulnerability risks, although foreign exchange reserve buffers remain low and would take time for rebuilding.

The Asian Development Bank has also given approval to an emergency loan of $1 billion as budgetary support.

Furthermore, the country has received £190 million from a settlement between Malik Riaz and the British government during the week.

While the Forex reserves held by the central bank increased by $431 million to $9.112 billion during the week that ended on the 29th of November.

The surge in the foreign exchange reserved of the SBP was because of the decrease in the foreign exchange swaps and forward liabilities of the central bank.

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