Rupee likely to stay range-bound against US dollar this week: report

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A dealer at a leading commercial bank said that it is expected that the rupee will continue to trade around the current levels, with little fluctuations, unless the markets witness a big demand among importers and corporates.

“The local unit should be range-bound, trading in the band of 159.80 to 160.30 per dollar in [the] sessions ahead,” he added.

With the rupee weakening 71 paisas to close the week at 160.13 against the greenback during the outgoing week, some traders expect the local unit to come under pressure due to year-end importers’ demand and higher debt repayments.

Reportedly, importers have started buying dollars, amid fear that the local currency could depreciate in the coming months. Foreign debt repayments are also expected to put pressure on the currency and contribute to the strain on foreign exchange reserves, they said.

Pakistan’s foreign exchange reserves fell $311 million, or 1.5%, to $20.241 billion as of November 27. The forex reserves held by the State Bank of Pakistan (SBP) dropped $305 million to $13.110 billion due to external debt repayments.

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