Tag: Currency Value

  • US dollar hits six-month low against Pakistani currency 

    US dollar hits six-month low against Pakistani currency 

    The Pakistani rupee (PKR) has been on an upward trajectory, with the US dollar (USD) experiencing its lowest value in six months.

    This development follows a concerted effort to combat dollar smuggling, resulting in a decrease of Rs5.50 in interbank trading this week. The greenback concluded the week at Rs282.69.  

    In the open market, the US dollar saw a significant drop of 6.50 rupees, closing at Rs281.50, down from Rs288.

    This decline has been a consistent trend in recent weeks, starting from the beginning of September, when the US currency has been steadily losing ground against the Pakistani rupee.  

    Notably, other foreign currencies have also seen a decrease in their value within the currency market. Over the past week, the Euro fell by 8 rupees, going from Rs306 to Rs298. Similarly, the British Pound Sterling lost Rs5, reaching a rate of Rs248 from its previous Rs253.

    The Saudi Riyal experienced a modest decrease of one rupee, moving from Rs76.20 to Rs75.20, while the Emirates dirham shed Rs2.60 to settle at Rs77.20, down from its previous rate of Rs79.80 over the weekend.  

    This strengthening of the Pakistani rupee against the US dollar in the open market has occurred while maintaining a narrow gap with the interbank market, aligning with the limits stipulated by the International Monetary Fund (IMF).  

    This positive trend in the rupee’s value against the dollar can be attributed to a nationwide crackdown on illegal currency operations carried out by law enforcement agencies. 

  • Pakistani rupee gains value, now at Rs292.78 per US dollar

    Pakistani rupee gains value, now at Rs292.78 per US dollar

    The Pakistani rupee’s ascent against the US dollar persisted for the 12th consecutive session in the inter-bank market on Thursday, registering a 0.38 per cent gain.

    According to the State Bank of Pakistan (SBP), the rupee settled at 292.78, marking a notable increase of Rs1.1 within the inter-bank market. Just the day before, on Wednesday, the rupee had exhibited a similar upward trend, appreciating by 0.35 per cent and settling at 293.88.

    This remarkable turnaround in the rupee’s value follows a recent period of decline, during which it hit a record low of 307.1 in the inter-bank market on September 5.

    The transformation in its fortune can be attributed to a series of structural reforms introduced by the State Bank of Pakistan (SBP) within the Exchange Companies’ (ECs) sector, along with various administrative measures implemented by authorities to combat currency smuggling and hoarding.

    On the global stage, the US dollar reached new heights on Thursday, notably against the yen, marking its strongest position since November.

    This surge in the dollar’s strength followed a hawkish stance taken by the US Federal Reserve at its recent monetary policy meeting, where it opted to maintain interest rates within the 5.25 per cent–5.50 per cent range.

    The Fed’s decision reflected a growing confidence among officials that their assertive monetary policy approach can effectively combat inflation without causing significant economic disruption or substantial job losses.

    Conversely, oil prices experienced a decline on Thursday, following the previous session’s significant drop, as expectations of US interest rate hikes overshadowed the impact of reduced US crude stockpiles.