KARACHI: Despite pressure from importers, the rupee is likely to remain within the range of the dollar next week, traders said on Saturday.
Although it seems that there is a strong demand for currency from emerging importers, we expect the rupee to trade around current levels. The سی 160-per-dollar level is unlikely to be breached in the coming session, ”said a foreign exchange trader.
The rupee / dollar pair rose to 160.95 and failed to break the 161 level despite several attempts. The interbank market closed at 160.72 against the dollar on Saturday.
The rupee has benefited from a greenback loss of Rs2.70 to the greenback in the last three sessions, pushing the support level to 158.10.
Analysts said there were some factors that helped the rupee depreciate this week.
The SBP had a real effective exchange rate of 94 in September, well above market expectations of 92.50. Moreover, the dollar was in oversold territory and was the cause of technological reform.
Traders said the central bank was hoarding dollars, meaning the SBP’s reserves had increased by 17 179 million over the weekend on November 13.
When the rupee could not break the 158 level, traders quadrupled their short position and importers pushed forward. In a modestly traded market, the rupee rose sharply, “said Trace Mark, a request to explore financial markets in client notes. It added that” traders expected the rupee to benefit them. Will drop and close around the year 160 level. “
Analysts say this is a healthy stabilization for the rupee and will pave the way for a re-examination of the currency at 158 in the medium term.
The above approach aims to stabilize healthy surplus, remittances and export and import demand in the current account. While no official numbers of bright digital accounts have been published, bank operators are on a strong arrival.
One analyst said that Pakistan’s 10-year (dollar-denominated) Eurobonds were trading at 10%, so unless a proper marketing campaign was launched, traders would not expect an increase in Roshan’s move. ۔
Another says, however, that the market needs a steady monthly revenue of 200 200 million per month, so a strategy should be developed to achieve these realistic goals.
Some analysts say there is speculation in the market that both the importer and the SBP are buyers. “Importers are buying to take advantage of the attractive PKR-USD [parity]While SBP works to build reserves to stabilize its book.
“I am confident that the USD-PKR will remain in the 158 to 163 bands due to the strong current account and the fall in oil prices. [being the key reasons]An analyst at Foundation Securities said.
The SBP’s monetary policy committee is scheduled to meet on Monday, where no major change in rates is expected.
“Cowed is still looking for innovative ways to make things easier for global economies and central banks. We believe there is a very strong argument for rate cuts and they should be given some weight,” said Trace Mark. “