Rupee weakens by 97 paisas on import payment demand

Rupee weakens by 97 paisas on import payment demand

KARACHI: The Pak Rupee weakened by 97 paisas to the dollar on Monday owing to higher demand for import and corporate payments.

The rupee ended Rs168.30 to the dollar from last Friday’s closing of 167.33 in interbank foreign exchange market.

Currency experts said that the due to first working day of the week the demand for greenback was remained higher. They said that the due to global economic slowdown owing to coronavirus the inflows of worker remittances and exports receipts were also reduced.

They, however, believed that the local currency may rebound in coming days owing to sufficient inflows.

State Bank of Pakistan (SBP) has said that 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.