Tag: Dollar to PKR

  • Pakistani rupee strengthens by Rs2.82 against dollar, closes at Rs270.51

    Pakistani rupee strengthens by Rs2.82 against dollar, closes at Rs270.51

    The Pakistani rupee (PKR) experienced an upward trend against the US dollar in the inter-bank market on Thursday, appreciating by 1.04 per cent due to expectations surrounding the revival of the International Monetary Fund (IMF) program.

    According to the State Bank of Pakistan (SBP), the currency closed at Rs270.51 against the US dollar, reflecting an increase of Rs2.82. Despite this improvement, the currency has depreciated by 23.7 per cent during the current fiscal year against the US dollar.

    On Wednesday, the PKR also saw significant gains against the US dollar, closing at Rs273.33, reflecting an appreciation of Rs2.95 or 1.08 per cent.

    In a key development, Finance Minister Ishaq Dar said on Thursday negotiations between Pakistan and the IMF are “on track” and “we will announce good news soon”.

    Speaking to the media, Dar said talks between the two sides had entered the final round, progress has been “satisfactory” and he hopes discussions will conclude today.

    The dollar index, which measures the US currency against six rivals, was 0.029 per cent higher on Thursday at 103.460, having dropped nearly 0.3 per cent in the previous session.

    Gold prices, rose for a fourth straight session as the dollar faltered, although bullion’s outlook remained cloudy amid the comments made by Fed officials.

    Meanwhile, oil prices, a key indicator of currency parity, were broadly steady on Thursday as the prospect of higher fuel demand in China as it reopens post-COVID curbs were offset by fears that US crude stocks hitting their highest for months may signal weakening demand in the world’s number one economy.

  • Intraday update: Pakistani rupee drops to all-time low of Rs270 against US dollar

    Intraday update: Pakistani rupee drops to all-time low of Rs270 against US dollar

    According to information provided by the Forex Association of Pakistan (FAP), the Pakistani rupee depreciated by an additional Rs7.4 after falling to a record low last week, trading at Rs270 per dollar in the interbank market at approximately 1:30 pm on Monday.

    From Friday’s close of Rs262.6, this represents a loss of more than 2.5 per cent.

    The decline of the rupee was blamed on a lack of dollars by Zafar Paracha, general secretary of the Exchange Companies Association of Pakistan (ECAP). He said that the dollar supply had not been resumed. Even though there is no agreement, we do not know where the banks will obtain their supplies.

    The SBP deputy governor assured representatives of exchange businesses last week that commercial banks would be instructed to provide money to the exchange companies.

    “There is a lot of panic in the market.” If dollars are received, it will cool down a bit. “As long as the market doesn’t settle, people will not sell their remittances or export proceeds,” Paracha said.

    The current spell of depreciation came after the coalition government ended its control on dollar’s price in order to convince the International Monetary Fund (IMF) officials to revive the $7 billion loan programme.

  • Exchange companies remove cap on dollar-rupee exchange rate to abolish grey market

    Exchange companies remove cap on dollar-rupee exchange rate to abolish grey market

    The exchange companies have decided to stop artificially keeping Pakistani rupee (PKR) overvalued against US dollar in the open market and let the rupee-dollar exchange rate depreciate to its actual value.

    Pakistani rupee may steadily lose value until it reaches the level of the grey market in a few days, according to reports.

    The black market price of local currency is currently between Rs250 and Rs260 per US dollar, although traders had artificially kept the rate at Rs238 till Tuesday.

    “The association has decided to remove cap on rupee-dollar exchange rate,” Exchange Companies Association of Pakistan (ECAP) President Malik Bostan said in audio and video messages after chairing a zoom meeting on Tuesday.

    “The move would help eliminate black currency markets, increase flow of foreign currencies to the dealers and available to public (for international travelling, education and hospital fees and etc.”

    He said that in the interest of the country, traders voluntarily opted to restrict the exchange rate. But the choice led to an underground market for cash that seemed to be more detrimental to the country.

    “People were buying dollars from open market (at Rs238) and selling in black market (at Rs250-260), making it a business to mint profit,” he said, adding no one was coming to the dealers’ counters to sell foreign currency which resulted into drying up supplies on the other hand.

    According to ECAP General Secretary Zafar Paracha, the decision to abolish the exchange rate ceiling will aid in the eradication of the black market and restore the inflow of foreign money from the illicit system into the legitimate one.

    Additionally, the government has been urged by the International Monetary Fund (IMF) to relinquish control over the rupee-dollar exchange rate in the interbank market and allow market forces to decide the rate while taking the demand and supply of US dollars into account.

    Accordingly, it is anticipated that the local currency would also reach Rs250-260 in the interbank market as compared to the US dollar.

    Pakistan technically has three currency markets, including the interbank, open, and black markets. As a result, each of the three markets is providing a different rate.

    The black currency market was formed after Finance Minister Ishaq Dar tried to keep the currency artificially overvalued at Rs180–200 to the US dollar after returning to the ministry in late September 2022.

    The currency, therefore, appreciated to Rs218 in the early days of October from its all-time low of Rs240 the first time in late July 2022 and the last time in September 2022.

    Dar opened an investigation against the commercial banks, blaming them for market forces that had artificially devalued the currency to Rs240 per dollar.

    Governor State Bank of Pakistan (SBP) Jameel Ahmed said that the central bank has completed the investigation against 13 commercial banks allegedly involved in rupee-dollar parity manipulation.

    “The central bank is all set to take action against them in days (instead weeks and months). The action could be fiscal or regulatory one,” he added.

  • Pakistani rupee continues to fall against USD for the third consecutive session

    Pakistani rupee continues to fall against USD for the third consecutive session

    For the third session in a row, the Pakistani rupee lost 97 paise in the interbank market on Friday as it fell against the dollar.

    The local currency depreciated by 0.44 per cent from yesterday’s finish of Rs221.5 to settle at Rs222.47 per dollar, according to the State Bank of Pakistan.

    Data gathered by Mettis Global show that the value of the PKR has decreased by Rs16.64 or 7.52 per cent since the beginning of this fiscal year.

    This week’s first day saw the sovereign default risk rise to its highest level since November 2009. On October 25, the country’s five-year credit default swap (CDS), which functions as a form of insurance against the risk of sovereign default, climbed by more than three per centage points, reaching 52.8pc, a 13-year high.

    Investors’ decreasing confidence in Pakistan’s capacity to repay its international loans is reflected in the growing CDS level.

  • US dollar may drop to Rs210 in November

    US dollar may drop to Rs210 in November

    Considering expected inflows from the Asian Development Bank (ADB) and Pakistan’s deletion from the Financial Action Task Force’s (FATF) grey list, the currency is projected to strengthen versus the US dollar this week.

    According to The News, this week in the interbank market, the local currency dipped by 0.89 per cent in value against the dollar. However, thanks to encouraging news from the ADB and FATF, the local currency increased to Rs220.84 during the last trading session.

    According to the analysts, assistance from multilateral creditors during the floods would help boost foreign exchange reserves and strengthen the local currency.

    The State Bank of Pakistan’s foreign exchange holdings as of October 14 totaled $7.59 billion, or nearly one month’s worth of imports.

    According to Tresmark, a terminal that tracks real-time pricing of financial markets, the rupee is predicted to trade at 216 to the dollar in the coming 10 days and 210 to the dollar in the coming 30 days.

    “This is because of ADB-related inflows of $1.5 billion in the coming week and $2 billion of inflows in the first week of November. Of course, this would not have been possible without the finance minister’s undervalued rupee mantra,” Tresmark said in a client note.

    Six months from now, though, would be the rupee’s true test, it was said.

    Analysts predict that the US interest rate will surpass 5 per cent (a level last reached in 2008) and that the dollar will continue to rise.

    Markets expect the Indian Rupee to be at 95 per dollar, the Bangladesh Taka to be at 115 per dollar, and the Yuan to continue declining, despite the fact that major currencies all have a bearish tendency. Although the dollar’s strength is an issue, the global recession continues to be of much greater concern.

    A 15-20 per cent decline in exports and a 5 per cent decline in remittances are anticipated by economists, even if the current account deficit (CAD) for September was practically at breakeven.

    They continued, saying that maintaining the economic winter would need sustained import compression and additional economic deceleration.

    Due to lower letters of credit being settled during the previous week, the rupee somewhat declined. According to market estimates, only around 50 per cent, or roughly $600 million, has yet to be processed.

  • Pakistani rupee maintains winning streak against dollar for 8th consecutive session

    Pakistani rupee maintains winning streak against dollar for 8th consecutive session

    On Tuesday, the Pakistani rupee (PKR) gained against the US dollar for the eighth session in a row, finishing more than 0.7 per cent stronger.

    According to the State Bank of Pakistan (SBP), the rupee strengthened by Rs1.55, or 0.73 per cent, to close at Rs225.64. The rupee has gained a total of Rs14.06, or 6.23 per cent, over the last eight trading sessions.

    For the seventh consecutive session, the Pakistani rupee appreciated versus the US dollar on Monday, finishing at Rs227.29 after gaining Rs1.16 (or 0.51 per cent) in the inter-bank market.

    Ishaq Dar’s return, who is renowned for supporting a strong rupee, and the reduction in speculation activity, according to analysts, are to blame for the currency’s recent increase.

    On Monday, the country’s newly appointed finance minister even predicted that the rupee may increase to less than Rs200 versus the dollar.

    In an interview, he claimed that the rupee’s actual worth is less than Rs200 (against dollar), and that it will fall to Rs200 soon.

    He continued by saying that because speculation had caused the present rate to rise, the rupee would be supported by policies.

    Experts claim that the dollar’s international strength has decreased, which is reflected in the currency market. Still, it would be very difficult to drive the rupee below Rs200, even if the speculative aspect is taken out of the equation.

    Despite the UN’s $816 million request, Pakistan has only received between $100 and $150 million in flood aid.

    The dollar index, which compares the value of the dollar to six other currencies, including the pound and the euro, remained roughly unchanged at Rs111.55, not far from the low set on Monday of Rs111.46, which was last seen on September 23.

    Oil prices, a major factor in defining currency parity, increased on Tuesday as optimism over OPEC+’s potential Wednesday agreement to significantly reduce crude output outweighed worries about the state of the world economy.

  • Intraday trade: PKR slides to new all-time low of Rs240.30 versus dollar

    Intraday trade: PKR slides to new all-time low of Rs240.30 versus dollar

    On Wednesday, the Pakistani rupee (PKR) maintained its declining trend versus the US dollar for the fourteenth session in a row. In intraday trading, the PKR lost Rs1.09 and fell to Rs240.

    In comparison to its previous closing rate of Rs237.91, the rupee lost 0.42 per cent on Tuesday, ending the day at Rs238.91.

    Fears that Pakistan won’t be able to pay its debts have been raised by floods that have harmed 33 million Pakistanis, caused billions of dollars worth of damage and killed more than 1,500 people.

    One of the poorest performing currencies in emerging economies, the local currency has lost about 9 per cent of its value so far this month due to a variety of causes.

    While Pakistan was able to revive its IMF programme and receive a $3 billion rollover from Saudi Arabia, the record floods have eclipsed everything else and have caused an economic blow of at least $18 billion and possibly as much as $30 billion.

    Experts believe that the heavy flooding and lifting of the import ban have put pressure on the rupee. To address the ongoing economic crisis, Pakistan continues to look for assistance from ally nations and international and bilateral organisations.

  • Pakistani rupee extends losses, nearing Rs219 against dollar

    Pakistani rupee extends losses, nearing Rs219 against dollar

    After closing at Rs218.38 on Wednesday, the Pakistani rupee (PKR) dropped further versus the US dollar on Thursday morning during the intraday trade.

    As of 11:00am, the rupee depreciated by Rs0.61 or 0.27 per cent against the US dollar to Rs218.99 during intraday trading.

    It is worth noting that the local unit has been witnessing a downward trend since the beginning of this week. PKR fell on Wednesday for the third straight session showing a decline of 0.33 per cent.

    The fall occurs amid news that Pakistan’s cash-strapped economy may receive support from an investment of $3 billion by the Qatar Investment Authority, one of the biggest sovereign funds in the world.

    Oil prices, a crucial factor in determining currency parity, increased on Thursday as supply fears mounted in the wake of delays to Russian exports, the potential for major producers to reduce output, and the partial suspension of a US refinery.

    US West Texas Intermediate crude increased 42 cents, or 0.4 per cent, to $95.31 a barrel, while Brent crude increased 59 cents, or 0.6 per cent, to $101.81 per barrel.

    On Wednesday, the PKR declined by Rs7 for both buying and selling against the USD on the open market, finishing at Rs227 and Rs229, respectively.

  • Toyota announces price cut for all vehicles

    Toyota announces price cut for all vehicles

    Toyota Indus Motor Company (IMC) has announced a reduction in car prices after the Pakistani rupee’s spectacular comeback against the US dollar.

    It is worth mentioning that Toyota had increased car prices up to Rs3.16 million less than two weeks ago.

    The latest car prices for Toyota’s Completely Knocked Down (CKD) units are listed below:

    Vehicle Old Price New Price Reduction
    Toyota Yaris
    Yaris 1.3 Gli M/T Rs3,799,000 Rs3,539,000 Rs260,000
    Yaris 1.3 Gli CVT Rs4,039,000 Rs3,769,000 Rs270,000
    Yaris 1.3 ATIV M/T Rs3,999,000 Rs3,729,000 Rs270,000
    Yaris 1.3 ATIV CVT Rs4,209,000 Rs3,929,000 Rs280,000
    Yaris 1.5 ATIV X M/T Rs4,309,000 Rs4,009,000 Rs300,000
    Yaris 1.5 ATIV X CVT Rs4,569,000 Rs4,259,000 Rs310,000
    Toyota Corolla
    Corolla Altis 1.6 M/T Rs4,899,000 Rs4,569,000 Rs330,000
    Corolla Altis 1.6 A/T Rs5,139,000 Rs4,789,000 Rs350,000
    Corolla Altis SE 1.6 A/T Rs5,639,000 Rs5,279,000 Rs360,000
    Corolla Altis 1.8 CVT Rs5,679,000 Rs5,269,000 Rs410,000
    Corolla Altis 1.8 Grande CVT Beige Interior Rs6,149,000 Rs5,709,000 Rs440,000
    Corolla Altis 1.8 Grande CVT Black Interior Rs6,189,000 Rs5,749,000 Rs440,000
    Toyota Hilux Revo
    Hilux Revo G 2.8 M/T Rs9,819,000 Rs9,169,000 Rs650,000
    Hilux Revo G 2.8 A/T Rs10,299,000 Rs9,609,000 Rs690,000
    Hilux Revo V 2.8 A/T Rs11,349,000 Rs10,599,000 Rs750,000
    Hilux Revo Rocco Rs11,999,000 Rs11,179,000 Rs820,000
    Toyota Fortuner
    Fortuner G A/T Rs12,489,000 Rs11,579,000 Rs910,000
    Fortuner V A/T Rs14,279,000 Rs13,259,000 Rs1,020,000
    Fortuner Sigma 4 A/T Rs15,069,000 Rs13,969,000 Rs1,100,000
    Fortuner Legender Rs15,839,000 Rs14,699,000 Rs1,140,000
    Toyota cars latest price list effective from 16 August 2022

    The automaker decreased the price of Corolla variants by Rs330,000-Rs440,000. The price of the Corolla 1.6 manual model was reduced by Rs330,000, from Rs4.899 million to Rs4.569 million. After a reduction of Rs350,000, the Corolla 1.6 automatic model is now priced at Rs4.789 million.

    Similar reductions were made in the price of Yaris variants, which were reduced between Rs260,000 and Rs310,000. The Yaris 1.5 CVT received the largest price reduction in the aforementioned category, falling by Rs310,000 to a new price of Rs4.259 million from its previous price of Rs4.569 million.

    The price of Hilux Revo was reduced between Rs650,000 to Rs820,000. While the invoice of Revo V AT Rocco dropped from Rs11.999 million to Rs11.179 million, the cost of Revo G MT reduced from Rs9.819 million to Rs9.169 million.

    Read more: Cheapest new cars to buy in Pakistan

    IMC also reduced the prices for the Fortuner models between Rs910,000 and Rs1.14 million.

    After a drop of Rs910,000, the Toyota Fortuner Lo Petrol variant is now offered for Rs11.579 million. The Fortuner Diesel Legender model witnessed a major price decrease, dropping from Rs15.839 million to Rs14.69 million.

  • Pakistani rupee continues to recover, PSX witnesses bullish trend

    Pakistani rupee continues to recover, PSX witnesses bullish trend

    The dollar was trading at Rs223 on Thursday, as the Pakistani rupee (PKR) increased by Rs5.79 in interbank trade to extend its winning streak versus the dollar to five days.

    The Pakistani rupee increased against the US dollar for the fifth day in a row, rising Rs2.65 to close at Rs226.15.

    US dollar to Pakistani rupee rate – 4 August 2022

    As the market opened on a good note and remained optimistic with heavy volumes in nearly all sectors for a while, the benchmark KSE-100 likewise rose up to 500 points before 12:00 pm. However, as of 1:40 pm, the market fell by 290 points.

    On Wednesday, the rupee gained the most against foreign currencies in a single day, ending the day at Rs228.80. The dollar’s decline versus the rupee reached its biggest level since November 2, 1998, when it dropped by Rs5.10.

    The local currency is strengthening as a result of increased export inflows and reduced import expenditures, with optimism that the cash-strapped nation was getting closer to winning an IMF bailout bolstering confidence.

    A board meeting is provisionally scheduled for late August after sufficient finance assurances are secured, according to a statement released on Tuesday by Esther Perez Ruiz, the IMF’s Resident Representative for Pakistan.

    Read more: Pakistan rupee appreciates Rs9.58 against US dollar, closes at Rs228.8

    The dollar may devalue between Rs180 and Rs190 against the Pakistani rupee if the IMF releases the $1.2 billion tranche in August, according to Malik Bostan, chairman of the Exchange Companies Association of Pakistan (ECAP).