“The rupee may recover to 145 to the greenback by June 30, 2020,” FAP President
Return on the schemes increased to around 13-14% per annum compared to where it stood around two years ago, at 7-8%.
Following gradual upgradation and stability, rupee has recovered 4.16 in four months. The downhill trend, that became a concern at the beginning of the ongoing fiscal year, is slowly gaining ground now and is likely to head towards more stability in the remaining eight months. The expectations of increased currency inflows present an optimistic picture.
Ruppee has gained ground Rs4.16, recovering 2.60% during the first quarter of the ongoing financial year. According to the State Bank of Pakistan (SBP), stood at Rs155.88 to the US dollar in the inter-bank market as the previous week concluded.
“The rupee may recover to 145 to the greenback by June 30, 2020,” Forex Association of Pakistan (FAP) President Malik Bostan projected while speaking to The Express Tribune.
“A notable drop in the demand for dollars due to reduction in imports and a surge in the rate of return on banks’ fixed deposit schemes caused an increase in the supply of dollars in the market and helped strengthen the rupee in the past four months,” he continued, speaking to the said source.
He added that domestic investors had now relocated their investments into ruppee-based fixed deposit schemes. It was done as return on the schemes increased to around 13-14% per annum compared to where it stood around two years ago, at 7-8%.
It pushed local investors to sell dollars at the currency dealers’ counters, increasing the inflow of dollars.
“With fresh foreign investment of $88 million in T-bills on October 24 (Thursday), total dollar inflows (into debt instruments) reached close to $440 million since July 2019 to date,” Topline Securities CEO Muhammad Sohail commented.
Experts are of the view that foreign investment, amounted at around $2-3 billion in debt instruments by June 30, 2020, will strengthen the country’s foreign currency reserves.
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