KARACHI: The US dollar is worth 94 paise on Friday against the rupee in the first session after the Eidul Fitr holidays in the interbank market amid strong demand for greenbacks.
However, money traders say the dollar’s income increased by 15 to 20pc during Ramazan, a common occurrence during the holy month.
The State Bank of Pakistan (SBP) reported that the dollar price rose to Rs186.63 on Friday from Rs185.69 on April 30.
The interbank market opened after the long Eid holiday holidays, but the rupee remained under pressure as sales opinion did not indicate any positive change.
Despite high payments and $ 4 billion in revenue through the Roshan Digital Account, the US dollar continued its rise against the domestic currency.
Market experts believe that the sharp decline in the SBP’s foreign exchange reserves over the past few months and the continued strong demand for dollars from foreign exporters put the rupee under constant pressure.
“The trade deficit increased by 65pc in the first 10 months of the current financial year clearly shows that the demand for dollars will remain high,” said Zafar Paracha, General Secretary of the Exchange Companies Association of Pakistan (ECAP).
He said the rupee-dollar exchange rate remains under severe pressure due to rising trade deficits. “Strong demand for dollars will weaken the rupee in the coming days unless the government takes concrete steps to reduce the demand for greenbakcs.
Bankers say reports about a possible 3 billion Saudi deposit deposit into a State Bank account cannot change sentiments.
“The new prime minister has asked the Saudi government not to withdraw the deposit in the hope of a better response to the Saudi government. However, the dollar has become more expensive against the rupee, “said Atif Ahmed, a currency trader on the interbank market.
The Exchange Companies Association of Pakistan chairman Malik Bostan said admission during Ramazan has increased to 20pc but data will be available next week.
Typically, an increase of 15 to 20pc in inflows is recorded each year due to generosity and high costs in the holy month with Eidul Fitr, “said Bostan.
SBP reserves fall
SBP foreign exchange reserves fell from $ 59m to $ 10.5bn last week on April 30. The savings of commercial banks was $ 6.054bn while the country’s total reserve was 16.553bn per week.
Published Parhlo, May 7, 2022