Through e-mail

PAKISTAN HOSIERY MANUFACTURERS & EXPORTERS ASSOCIATION

PHMA House, 37-H, Block-6, P.E.C.H.S, Karachi. Tel: 0092-21-34522769, 34522685, 34544765

Fax: 0092-21-34543774, E-mail: info@phmaonline.com 

Ref. No. PHMA/Cir-039/2018
Dated: 11
th June, 2018

To: All Members of the Association (Southern Zone & Northern Zone)

 

Devaluation: Consolidation around 120, Tough times ahead for Rupee

 

We re-produce below email of Landmark Investment on the subject for the information of all our valued members, the contents of which are self-explanatory.

 

From: Waqas Hussain
Sent: Monday, June 11, 2018 12:21 PM
To: info@phmaonline.com
Subject: Devaluation : Consolidation around 120, Tough times ahead for Rupee

 

While the devaluation is consistent with earlier episodes of roughly 5 rupee adjustment, some analyst are of the view that Shmashad Akhtar will subsequently also let the rupee trade in free float mode, which means that the central bank will not actively manage the rupee rate.

 

This may deplete the value of Rupee further and put much more pressure on reserves, but at the end of the day may reflect the real price of local currency. Essentially, this may not be the end of Rupee depreciation and we may have tough times ahead. With less than 2 month import cover left, the ground is also being set up for new IMF loan as one of the condition is no SBP intervention.

 

Expected USDPKR rate in coming days is 125-130.

 

Regards,

 

Waqas Hussain

Vice President Sales

Landmark Capital / Tresmark

 

Thanks and Best Regards,


Khadim Rasool

Secretary General-PHMA