Rupee likely to maintain gaining momentum in next week

KARACHI: The Pak Rupee likely to maintain gaining momentum during next week owing to lower import payment demand and better inflows.

The rupee gained 20 paisas against dollar during the week (October 28 to November 01) in interbank foreign exchange market. The gain in the local unit was witnessed due to lower import and corporate demand.

Currency experts said that the ongoing political uncertainty may pressure the rupee. However, they said that the lower demand for import payments and inflows to keep the rupee on upward trajectory.

The experts also believed that the ongoing anti-money laundering drive and counter terror financing would help the rupee to appreciate against the greenback.

The import payments have significantly since the start of current fiscal year due to measures taken by the government. The imposition of regulatory duty on luxury items and check on under-invoicing and misdeclaration at import stage also resulted in lower imports.

Besides, the overall economic slowdown, which lower the demand in domestic market, was also reduced the quantum of imports.

The import bill of the country fell by 21 percent to $11.25 billion during first quarter (July – September) of current fiscal year as compared with $14.16 billion in the corresponding quarter of the last fiscal year.

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