KARACHI: Due to anticipated dollar inflows from foreign lenders to support Pakistan‘s relief and reconstruction efforts following the catastrophic floods, the rupee is projected to strengthen against the US dollar in the coming week, according to traders.
After losing ground against the dollar for 15 straight sessions, the local currency suddenly reversed course on Friday.The rupee nearly sank to a historic low against the dollar of 240 but was unable to do so. This week, according to The News, it lost value relative to the dollar on the interbank market, falling by 0.73% to 239.65.
“The anticipated bilateral and multilateral flows in the wake of the disaster will likely alleviate the burden on foreign exchange reserves and stabilise the rupee as well. We expect the rupee to either maintain its present levels or undergo some consolidation in the days to come, according to a currency dealer.Through ongoing and new programmes, the World Bank intends to offer up to $ 1.7 billion in flood-related assistance. In addition, the dealer believes that stories of the government asking bilateral creditors for debt forgiveness in the wake of disastrous flooding and the loosening of IMF requirements will assist to boost confidence in the rupee.
