KARACHI: Currency market experts have warned that the absence of channels for attracting dollar inflows could pressure the rupee as the government may need to borrow from commercial banks at higher interest rates to meet its debt repayment obligations.

They also noted that the US dollar is gaining strength against major Asian and European currencies following Donald Trump’s taking over as the 47th president of the world’s largest economy. This could further contribute to weakening the rupee, which has remained stable against the greenback for over a year thanks to some stringent measures, including restricting outflows and a crackdown against smuggling.

At the same time, some merchandise exporters said the country needs to remain competitive in the regional markets to attract orders at lower prices, which may depreciate the rupee.

Currency experts offer several reasons for possible rupee depreciation,........

© Dawn Business