After continuous upward trend, dollar loses Rs2.17 against rupees today
The Pakistani rupee gained ground against the dollar on Monday and appreciated by Rs2.47 in the interbank market at the start of the intraday trade after three sessions.
The Pakistani rupee was trading at Rs220.03 per dollar at 12:30am, up by 0.98 percent from Friday’s close of Rs222.47, according to data from the Forex Association of Pakistan (FAP).
Saad bin Naseer, director of financial data and analytics web portal Mattis Global, attributed the rise in the value of the rupee to two factors, one of which is Prime Minister Shehbaz Sharif’s visit to China during which trade and business relations are expected to improve and the (real effective exchange rate) index fell to 90.9 in September compared to 94.4 in August.
Real Effective Exchange Rate is the average value of a country’s currency against other major currencies, this exchange rate is used to determine the value of an individual country’s currency against other major currencies in the index.
Komal Mansoor, head of research at TraceMark, also noted that the real effective exchange rate (REER) index was below JPMorgan’s expected figure of 108, indicating that the depreciation of the rupee is likely to continue, this indicates that the rupee was undervalued and we are seeing the rupee strengthening during the trading session.
“We expect the rupee to appreciate further as there is an inflow from the World Bank, the dollar is still very strong as importers want to maintain their stocks,” she said.
