Tag: Intraday trading

  • Pakistani rupee makes strong recovery against dollar during intraday trade

    Pakistani rupee makes strong recovery against dollar during intraday trade

    In the first hours of trading on Monday, the Pakistani rupee advanced significantly versus the US dollar, rising by more than 1.5 per cent.

    In intraday trade, the rupee appreciated by Rs3.66 (1.6 per cent), or around 10:30 am, to Rs235.99 against the US dollar.

    The local unit fared somewhat better the week before after the US Federal Reserve announced raising the main interest rate, ending the week 1.2 per cent weaker versus the US dollar.

    Before eventually snapping a 15-session losing streak to settle at Rs239.65 on Friday, the rupee lost value in four of the five sessions, edging perilously close to its all-time low in the inter-bank market.

    However, Monday’s triumph is the result of political development. Miftah Ismail, the Federal Minister of Finance and Revenue, stated in a statement on Sunday that he will submit his formal resignation after orally resigning at a party meeting in London.

    Ishaq Dar, a senior PML-N leader, would take Miftah’s post as finance minister.

    Dar is largely seen as an advocate for a higher rupee, and experts claim that since he was appointed finance minister, markets have tended to be optimistic on the local currency.

    Furthermore, in another significant step, the nation’s central bank on Friday prohibited ECs for cash sale transactions of $2,000 and above in order to further improve the regulatory regime for Exchange Companies (ECs) and promote the use of banking channels.

    According to the SBP’s new guidelines, ECs must now complete all foreign currency selling transactions against PKRs totaling $2,000 or more through banking channels.

  • Intra-day trade: Pakistani rupee touches Rs207.7 against US dollar

    Intra-day trade: Pakistani rupee touches Rs207.7 against US dollar

    In intra-day trade in the inter-bank market on Thursday, the local currency sank to Rs207.7 against the US dollar, continuing its downward trend.

    The rupee hit an all-time low against the dollar on Wednesday, closing at Rs206.46.

    This was partly due to the strengthening of the dollar on the international stage, but it was also due to the local currency market anticipating a greater increase in inflation.

    Finance Minister Miftah Ismail had previously stated that the government’s budget for 2022-23, which was announced last week, failed to persuade the International Monetary Fund (IMF) to disburse the next tranche of Pakistan’s $6 billion loan programme, and that changes to the finance bill would be required.

    The finance minister has declared unequivocally that the IMF is dissatisfied with the budget and that it will be revised.

    Experts believe that the rupee would only stabilise if the amendments are put into the Finance Act. He predicted that the local currency will remain volatile in the coming days.

    Pakistan’s government announced a third increase in petroleum prices in less than three weeks late Wednesday, as it tries to placate the IMF, which has emphasised the elimination of energy subsidies in order to resuscitate its bailout programme.

    The next payment of the IMF scheme is slated to give Pakistan $900 million, but the global lender has put the programme on hold due to a variety of circumstances, including fuel subsidies and a worsening current account deficit. It has also stated that greater direct taxes are required.