Rupee is expected to continue downward trend due to economic slowdown and coronavirus outbreak.
The Pakistan rupee came under pressure and shed another 0.5 per cent of its value against the US dollar on Wednesday as local importers generated demand for the greenback to clear their liabilities in outgoing financial year on June 30.
The rupee declined to Rs165.65 against the US dollar (45.14 versus the dirham) in open market as local importers purchased more US currency. It closed Rs163.05 against the US dollar (44.42 versus the dirham) on Tuesday.
Market insiders and analysts said the rupee is expected to continue downward trend in coming months due to economic slowdown and worsening situation of the coronavirus outbreak in the country.
“Outlook for the rupee is weak, as global liquidity environment is tough and inflows including exports and remittances remain uncertain,” Samiullah Tariq, head of Research & Development, Pakistan Kuwait Investment Company, told Khaleej Times on Wednesday.
“The rupee is expected to sustain downward trend in near future due to scheduled debt repayments, import payments and lower remittance inflows,” he said.
The rupee has been continuously losing over the past month against the US dollar and other major currencies, hitting 45.05 against the UAE dirham and 165 versus greenback on June
The currency has lost 4.8 per cent last month. On May 1, it was trading at 42.9 against the dirham and then hit 43.66 on May 14 and further lowered to 45.05 on June 3. It lost 1.6 per cent against the US dollar and the UAE dirham this month so far.
Earlier this month, the State Bank of Pakistan (SBP) issued a report to highlight impact of Covid-19 on Pakistan’s economy and foreign exchange reserves of the country that may lead to a decrease in rupee value against the dollar.
