Rupee likely to end fiscal year on stable note

Business National

KARACHI: The rupee’s depreciation is unlikely during the remaining period of the current fiscal year as inflation has left no space for its decline, experts said on Saturday.

The exchange rate looks stable since the rupee is valued below Rs280 against the US dollar, though some analysts believe it might end up at Rs310 with the completion of current fiscal year.

“The fiscal year started with USD/PKR at 286. Judging by historic trends, an annual depreciation of 7pc to 10pc is typical, which supports the exporters and maintains REER (Real Effective Exchange Rate) near par. This implies that June-end closing rates would be around 310 per dollar,” said Faisal Mamsa, CEO of Tresmark, a financial terminal for real-time market rates, charts and financial data.

“As of today, the rupee is actually stronger by around two per cent, and major depreciation looks unlikely,” he added.

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