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Rupee rises to 2 year high against Dollar

The Pakistani Rupee has risen to it’s 2 year high against the Dollar, at the price of 154.10 PKR for 1 USD.

“The market sentiments are that that the dollar will further shred its value more,” said Zafar Paracha, Secretary Exchange Companies Association of Pakistan (ECAP).

The dollar rate fell by 2.4% only in March 2021.

“When the market behaves this way, the selling begins which further puts the dollar under pressure. The same thing happens when the market expects the dollar to rise, people start buying, and subsequently dollar rate increases,” Zafar said.

He added that these market sentiments are due to improved inward remittances and lower outward remittances.

“Dollar may further lose its value and it can go down to as low as Rs152,” he said.

Paracha said the Naya Pakistan Certificate offers a lucrative 7% interest rate, which was increasing the flow of dollars into the country.

The Head of Research at BMA Capital Faizan Ahmed also said that he sees the dollar fluctuating between Rs152 and Rs155.

“The market was expecting that current account deficit would be high in February, something around $500 million but it actually came out at only $50 million. It also played a role in the falling rates of dollar recently,” Ahmed said.

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