Rupee weakens by 20 paisas ahead of Eid holidays

Rupee weakens by 20 paisas ahead of Eid holidays

KARACHI: The Pak Rupee weakened by 20 paisas against dollar on Thursday ahead of higher demand for the foreign currency ahead of Eid holidays.

The rupee ended Rs166.98 to the dollar from previous day’s closing of Rs166.78 in interbank foreign exchange market.

Currency experts said that the rupee weakened owing to demand for the greenback for the payments of import and corporate during Eid holidays.

The government has announced holidays for Eid-ul-Adha from July 31, 2020 to August 02, 2020,

Currency experts said that positive indicators regarding external financing may help the rupee to recover the values.

The State Bank of Pakistan (SBP) on this week received $505.5 million from the World Bank.

The workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.

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