US dollar records new low against PKR

According to the details, the dollar continued to depreciate after the recovery in the country's economy and reduction in the current account deficit. On the third day of the business week, the dollar lost another 98 paisas in the interbank market.

According to the State Bank of Pakistan US dollar against PKR closed at Rs155.74 in the interbnak market.

Interbank closing #ExchangeRate for today: https://t.co/KQ8TfPtcXo pic.twitter.com/74M0qKLmAO

— SBP (@StateBank_Pak) March 17, 2021

Forex dealers say the dollar fell below its one-year low of Rs156 at the trading time ended.

Since August 26, the dollar has depreciated by Rs12.55 in the interbank market, while in seven months the dollar has depreciated from Rs168.43 to Rs155.74 in the interbank market.

The Roshan Digital account has so far accumulated 67 crores, while remittances have crossed 18.7 billion in the first eight months of the current financial year.

However, the improvement in exports is also having a positive impact on the rupee.

It may be recalled that the State Bank of Pakistan had issued a report on foreign exchange reserves till March 5, stating that "as of March 5, the reserves of the Central Bank had increased by 38 million".

“The demand for the hard currency remained subdued due to fewer import payments. Strong inflows from remittances and Roshan Digital Account have increased the dollar supplies in the market,” said a currency dealer. “We expect the rupee to easily trade below Rs158 levels/dollar in the coming sessions. The next range for the rupee could be Rs156 to Rs155.”

Dealers said the local unit continued to march upwards due to soft importers’ dollar demand and inflows from remittances, Roshan Digital Account, and export proceeds.

It is important to mention that Pakistani Rupee appreciates when lesser amount of rupees is required to get one USD whereas PKR depreciates when more rupees are required to get one greenback.