Rupee hits fresh low of 169.97

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Trade balance in Pakistan rapidly getting wors
Trade balance in Pakistan rapidly getting wors
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A section of financial markets has changed its view over the rupee-dollar parity in short to long-run, anticipating the local currency would maintain its downward trend under the current cycle instead of getting stabilised at current levels amid rising import payment pressure and worsening financial crisis in Afghanistan, reports Tribune.

The Pakistani rupee hit a fresh low of Rs169.97 against the US dollar in the inter-bank market on Tuesday, according to the central bank’s data.

Talking to The Express Tribune, JS Global Capital Head of Research Amreen Soorani said: “The rupee will gradually drop to Rs175-176 against the greenback by the end of current fiscal year.”

The research house has revised its expectations following the deepening financial crisis in Afghanistan and spike in commodity prices in international markets. The situation would increase demand for dollars in the domestic economy.

“The revised estimates suggest the average value of rupee would be around Rs171-172 for the current fiscal year,” she said.

“Earlier, we estimated the average value at Rs170 for FY22,” she added.

The rupee was losing its value against the greenback due to rising demand of US dollars in the domestic economy, while supplies remained comparatively low in the inter-bank market.

Owing to rumours that the rupee would slide to 200 against the greenback, exporters have stopped selling dollars in the inter-bank market. The situation has invited panic buying of the foreign currency by importers.

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