Rupee expect to stay in pressure Against The Dollar

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Rupee expect to stay in pressure Against The Dollar

According to traders, the rupee is expected to remain under pressure against the dollar next week due to the impact of importers’ demand for foreign currency and rising crude oil prices.

“We are still disappointed with the rupee next week and expect it to weaken further,” said a foreign exchange dealer at a commercial bank.

“Traders believe that if the removal of the corona virus limits increases demand, the prices of oil importers will go up even more.”

Around the next sessions, he forecasts a rupee trade in the range of 171.25-171.55.

Crude oil hit a new high of 85 85 a barrel on Friday, the highest since October 2018.

Traders are worried about the impact of rising commodity prices around the world, especially oil prices, on the country’s trade balance.

He believes that this will result in a devaluation of the currency.

During the last week, the rupee continued to lose momentum, reaching a new low of ڈالر 171.20 in the interbank market.

Until the International Monetary Fund’s lending program begins, some dealers expect the rupee to remain close to the 171 level. After that, the local currency will begin to stabilize, although a large current account deficit will prevent a sharp rise in the exchange rate.

According to Finance Minister Shaukat Tareen, the government will soon finalize the issue with the IMF, which is in Washington to negotiate with a fund to renew the 6 6 billion loan facility. He added that his meeting with the IMF was very good.

Traders, on the other hand, are waiting for the IMF to recognize the government’s measures and successfully complete the Sixth Review, which will pave the way for a ارب 1 billion transfer to Pakistan.

Re-entry into the IMF program could boost the confidence of traders.

Pakistan, meanwhile, successfully paid 1 1 billion in Sukuk maturity this week. These emissions will appear in future reports on foreign exchange reserves.

Foreign reserves fell again this week, but the rate of decline has slowed. The country’s reserves fell to 25 25.969 billion from 25 25.999 billion last week.

The quarter is also likely to see some spending due to Chinese investment, which will put pressure on currency reserves.

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