Rupee likely to struggle against US dollar next week

KARACHI: The Pakistani rupee is expected to trade range-bound in the coming week, depending on the demand for greenback by importers as the State Bank of Pakistan (SBP) has started to clear pending letters of credit.
The market will also keep an eye on any assistance from multilateral lenders in the form of finance pledges following the cataclysmic floods in Pakistan, The News reported.
The local currency broke its winning streak against the dollar and depreciated by 0.21% during the outgoing week in line with the increasing demand for the greenback from importers.
However, the dollar supplies also reduced due to fewer greenback conversions from exporters.
Pakistan’s foreign exchange reserves also kept shrinking. The market was worried about how the country can pay its debt payments and funds its current account deficit given its dwindling reserves. -PNP