The rupee continues to strengthen against the dollar and now it has returned to its pre-COVID level.
During intraday, the rupee is trading in the range of Rs. 152.83 and Rs. 154.25 against the USD today. This is the strongest since February 17, 2020. PKR closed at nearly Rs. 153 to the USD in the interbank market today, appreciating 95 paisas.
Senior analyst at Tresmark, Komal Mansoor said, “This was the expected support level. With a spike in covid cases and speculation of lockdowns, this level may not be sustained and the rupee may bounce back to Rs156-157. However, strong Ramzan inflows may lend further support pushing the parity to Rs150-152. Eurobonds are being floated so that works as a positive for the currency as well.”
Pak Kuwait Investment Company Head of Research, Samiullah Tariq, comments, “There are multiple reasons for the gain in the rupee. Generally, inflows are greater than outflows. Exporters are booking forwards, IMF agreement has resumed inflows from FIFs, and reduced outflows because of reduced tourism, hajj and umrah. In addition, AML/KYC has reduced hawala hundi (informal remittance channels) to a great extent making remittances rise significantly. The sustainability of the rupee on this level, however, relies on the Covid situation and oil prices.”
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