Significant foreign inflows boost Rupee by 6% since 1H 2012

Significant foreign inflows have strengthened the rupee by 6% against the dollar since the first half last year, the Central Bank said yesterday.

“As a result of the significant foreign inflows already being witnessed, the rupee, which appreciated by 5.3% against the US dollar during the second half of 2012, appreciated further by 0.6% by 15 January 2013,” the bank said in comments following the first monetary policy review for 2013.

Central Bank also said the external sector projections target a higher BOP surplus in 2013 with expectations of an improved trade balance, increased earnings from service exports, higher workers’ remittances, increased inflows to the Government and capital markets, and in the form of foreign direct investments.