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Rupee declines, expected to stabilize around 100 mark

Rupee declines, expected to stabilize around 100 mark

ISLAMABAD: The rupee has decline by 80 paisas to close at 99.35 against the US dollar in the interbank market, dealers said. The forex market faced some panic on buying pressure and speculative sentiment, they said.

The rupee hovered in the range of 99.35 and 99.45 per dollar at the commencement of the trading. The dealers expect the rupee to decline further and reach the level of 100 next week. In the open market, the rupee was traded at 101 for buying and 101.25 for selling against the dollar.

“It seems that the rupee will not cross the barrier of 100 at least in the near-term due to receipt of $ 1.5 billion foreign inflows from official sources under the head of Pakistan Development Fund,” a dealer said.

“Pakistan is also set to receive $ 550 million from the IMF’s extended fund facility by the end of this month, which will increase the official reserves of the State Bank of Pakistan and stabilise the exchange rate,” the analyst added.

The rupee has appreciated by more than 7 per cent since the beginning of the month due to an increase in foreign investment and remittances from overseas Pakistanis as well as several foreign loans aimed at propping up the economy.

“The interest rate will stay unchanged at 10 per cent for the next two months,” the SBP spokesman said.

The finance ministry has also attributed the currency’s recovery to punitive action against exporters withholding export receipts abroad and warnings to foreign exchange speculators.