US dollar weakens against Pakistani rupee

Interbank closing #ExchangeRate for today: https://t.co/YUvRfAlsuq pic.twitter.com/QcLxd8nnsy

— SBP (@StateBank_Pak) March 18, 2021

According to Forex dealers, the dollar fell from Rs155.74 to close at Rs155.45 in the interbank market.

Forex dealers say the dollar fell below its one-year low of Rs156 and closed at Rs155.74 at the trading time ended.

Since August 26, the dollar has depreciated by almost Rs13 in the interbank market, while in seven months the dollar has depreciated from Rs168.43 to Rs155.45 in the interbank market.

Earlier the day, US dollar fell below its one-year low of Rs156 and closed at Rs155.74.

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 Rs157 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.