Rupee likely to recover

The rupee is likely to recover against the dollar on record foreign exchange reserves level of $23 billion and inflows of Eid-related remittances, dealers said.

They said the rupee may come under pressure due to extended Eid holidays, as next week only one trading day will be observed at the interbank market. “This will increase the dollar demand for import payments,” a dealer said.

A day ago, Finance Minister Ishaq Dar announced the historic level of foreign exchange reserves at $23 billion. However, the commodity prices, including world oil prices are almost stable.  During the week (June 27–30), the rupee remained stable despite closing of the fiscal year owing to the inflows of Ramazan and Eid-related remittances.