Tag: money gram

Pakistani rupee snaps 10-day depreciation streak against US dollar with 0.02% gain

The Pakistani rupee (PKR) finally terminated its ten-session depreciation streak against the US dollar on Friday as the local currency concluded trading at Rs305.47 versus the greenback. The State Bank of Pakistan (SBP) reported a modest appreciation of Re0.07, or 0.02 per cent, when compared to the previous day’s closing rate.

Interbank Closing
PKR Take a Breather Against USD!
The Pakistani Rupee gained PKR 0.0712 (0.02%) against the US Dollar on DoD basis ending the session at PKR 305.4669/US$.#economy #forex #ExchangeRate #Dollar #Currency #Pakistan pic.twitter.com/58hOHtWTw7

— Capital Stake (@CapitalStake) September 1, 2023

Thursday had marked a historic low for the PKR, with a closing rate of Rs305.54 against the US dollar in the inter-bank market. This decline had raised concerns about the currency’s stability and its impact on the nation’s economy.

However, the SBP made a significant announcement on Friday. It categorically rejected reports circulating in the media about an emergency meeting of the Monetary Policy Committee (MPC). The central bank termed these reports as completely baseless and emphasized that it would be premature to forecast the future policy rate.

According to the central bank, only the MPC, an independent statutory body, holds the authority to make decisions regarding the policy rate. The next scheduled meeting of the MPC is set for September 14, 2023.

Internationally, the US dollar has faced challenges as it attempts to maintain its winning streak against major currencies. Traders are closely monitoring the pivotal monthly US jobs report, which is expected to shape Federal Reserve policy in the coming months.

The US dollar index, which measures the currency against a basket of six developed-market peers including the euro, sterling, and yen, saw a slight decline of 0.05 per cent to 103.58 on Friday. This marks a cumulative decline of 0.53 per cent for the week.

Additionally, oil prices, a significant indicator of currency parity, remained above $87 a barrel. Crude prices are showing signs of snapping a two-week losing streak, driven by expectations of tightening supplies.

The Pakistani economy remains closely tied to global economic developments, making these currency fluctuations and international economic indicators crucial for policymakers and market participants. The nation will continue to monitor these trends closely in the days and weeks ahead.

September 1, 2023
Pakistani rupee ends the day at another record low of Rs305.54 versus US dollar, losing Rs1.09

The Pakistani rupee (PKR) persisted in encountering downward pressure against the US dollar, with a recorded depreciation of 0.36 per cent. The day concluded with the rupee settling at Rs305.54, having incurred a loss of Rs1.09 in the interbank market, as reported by the State Bank of Pakistan (SBP).

Interbank closing #ExchangeRate for todayhttps://t.co/wZnBHxjjGt #SBPExchangeRate pic.twitter.com/1ajdB67TzJ

— SBP (@StateBank_Pak) August 31, 2023

In the preceding session, the rupee had concluded at a historic low of Rs304.45 against the US dollar in the inter-bank market.

Interbank closing #ExchangeRate for todayhttps://t.co/uoyN8h2pSj #SBPExchangeRate pic.twitter.com/EQ4HHYi1S3

— SBP (@StateBank_Pak) August 30, 2023

IMF deviation risks dollar inflow halt

In a session of the Senate Standing Committee on Finance held on Wednesday and chaired by Senator Saleem Mandviwalla, interim Finance Minister Dr Shamshad Akhtar conveyed that the interim government’s financial leeway for subsidies was limited. However, she mentioned that a proposal was being deliberated upon to discontinue electricity provisions for privileged segments.

Dr Akhtar voiced apprehension that a deviation from the International Monetary Fund’s (IMF) stipulations could lead to a halt in dollar inflows, exacerbating the economic challenges facing the nation. She acknowledged that certain governmental actions had adversely affected the economic landscape. She specifically noted that the Federal Board of Revenue’s revenue collection was not meeting expectations while expenditures remained elevated.

The Senate committee expressed its reservations about the escalating exchange rate fluctuations, the unprecedented cost of electricity, and the 22 per cent interest rate, all of which collectively pose difficulties for existing businesses to sustain and prosper.

As a pivotal gauge of currency equilibrium, oil prices moderated on Thursday in response to data indicating a decline in China’s manufacturing activity. Additionally, investors were attentively awaiting the forthcoming US personal consumption expenditure report scheduled for later in the day.

KSE-100 crash

Moreover, the Pakistan Stock Exchange (PSX) remained firmly under the control of bears on Thursday as the benchmark index experienced a substantial drop of nearly 4 per cent, reflecting concerns about the country’s deteriorating economic situation.

Investors responded with a sense of panic to the escalating rupee-dollar parity, choosing to divest from shares due to apprehensions surrounding an imminent economic crisis.

Right from the commencement of trading, the KSE-100 index experienced a sharp decline, plummeting by over 1,700 points and breaching the 45,000 level. A prevailing negative sentiment among investors is preventing the index from making any headway into positive territory.

August 31, 2023
Pakistani rupee hits new all-time low of Rs304.445 after declining by Rs1.38 against US dollar

In the interbank session held on Wednesday, the Pakistani rupee (PKR) exhibited a decline of 1.39 rupees against the US dollar (USD). The closing exchange rate for the day stood at Rs304.445 per USD, in contrast to the concluding rate of Rs303.052 per USD observed in the preceding session.

Throughout the trading day, the currency displayed a fluctuation, reaching an intraday high bid of Rs304.75 while also touching a low ask of Rs304.6.

On a parallel note, within the open market, Exchange Companies set the buying rate for the dollar at Rs320 and the selling rate at Rs323.

Interbank Closing
PKR Declines Further Against USD!
The Pakistani Rupee lost PKR 304.4450 (0.46%) against the US Dollar on DoD basis ending the session at PKR 304.4450/US$.#Pakistan #Currency #ExchangeRate #Dollar #Rupee pic.twitter.com/FBkMR64pOu

— Capital Stake (@CapitalStake) August 30, 2023

In the ongoing fiscal year, the Pakistani rupee has experienced a depreciation of 18.45 rupees against the dollar, amounting to a 6.06 per cent decrease. Concurrently, within the current calendar year, the PKR has depreciated by 78.01 rupees, reflecting a substantial decline of 25.63 per cent.

August 30, 2023
Rupee resumes downward trend against US dollar

Pakistani rupee suffered a marginal loss of Rs0.50 against the US dollar in the interbank market, extending its losses for a second straight session.

State Bank of Pakistan (SBP) reports that the local currency lost Rs0.50 against the dollar in the interbank market and ended the day at Rs218.38.

Interbank closing #ExchangeRate for todayhttps://t.co/dujfbK7WBp pic.twitter.com/RtHy4ZkudH

— SBP (@StateBank_Pak) October 13, 2022

The Forex Association of Pakistan (FAP) said that banks were trading US dollars for Rs218.78 at the time. The exchange rate for the dollar in the open market was between Rs220 and Rs222.

This is the second time, the rupee has registered a loss in its value after Federal Finance Minister Ishaq Dar’s return to office. The local currency appreciated by almost Rs22, or 10.1 per cent, against the greenback in the last 13 sessions.

Earlier, Federal Minister For Finance and Revenue Ishaq Dar vowed to bring back Pakistani rupee at its original value which is less than 200 against US dollar. “I can genuinely prove that dollar’s actual value is below Rs200,” he added.

October 13, 2022
Pakistani rupee continues to rise for 13th consecutive session

The Pakistani rupee is strengthening versus the US dollar in the interbank market and increased by more than 0.4 per cent on Tuesday morning.

During intra-day trading, the rupee was quoted at Rs216.97 at around 10:40 am, up Rs1 or 0.46 per cent against the US dollar.

On Monday, the rupee continued its upward trend against the US dollar for the 12th straight session and appreciated Rs1.95 or 0.89 per cent to settle at Rs217.97.

The Monetary Policy Committee (MPC) of the central bank maintained its benchmark policy rate at 15 per cent on Monday, which was a significant development.

However, market observers attribute the rupee’s recent increase to the central bank and other authorities’ efforts to curb market speculation.

According to Brecorder, the United Nations Development Programme issued a grim warning on Tuesday, stating that there was a debt problem that was rapidly worsening in a number of developing countries, including Pakistan.

Without prompt assistance, the poverty rate in at least 54 countries would increase, according to UNDP, and “critical investments in climate adaptation and mitigation will not happen.”

Sri Lanka, Pakistan, Tunisia, Chad, and Zambia are the nations most at risk right now, according to UNDP head economist George Gray Molina.

In other countries, the dollar loomed big over precarious financial markets on Tuesday, worrying investors with concerns about rising interest rates, global growth, and geopolitical tensions.

The 20-year high of Rs114.78 that it reached late last month was not far away; the US dollar index was up 0.053 per cent at Rs113.12 at the time.

An increase in COVID-19 cases in China and a stronger US dollar contributed to Tuesday’s decline in oil prices, a major measure of currency parity, as they sparked worries about a faltering global economy.

October 11, 2022
Pakistani rupee nearing an all-time low

On Monday, the Pakistani rupee (PKR) fell for the third consecutive session as depleted foreign exchange reserves and uncertainty over the renewal of the International Monetary Fund (IMF) programme weighed on the local currency.

The PKR lost 0.48 per cent of its value against the US dollar in the interbank market.

The rupee ended the day at Rs187.53, down 90 paisas, or 0.48 percent, according to the State Bank of Pakistan (SBP). After a 0.5 per cent decline, the rupee finished at Rs186.63 on Friday.

Considering the latest decline, the local currency is only 65 paisas away from reaching an all-time low of Rs188.18 on April 7, 2022.

Oil prices fell on Monday alongside equities, driven down by a strong dollar and demand fears stemming from China’s continued coronavirus lockdowns.

Read more: Bitcoin falls to lowest since January after stock market

The key cause driving the rupee’s decline against the greenback, according to Arif Habib Limited Head of Research Tahir Abbas, is uncertainty on the IMF front.

Uncertainty about the programme led to a surge in selling pressure in Pakistani stocks, which fell throughout the day.

May 9, 2022
PKR declines against US Dollar after winning for a week

The winning days for Pakistani currency are over. On April 18, the Pakistani Rupee (PKR) overturned gains against the US Dollar (USD) and registered losses in the interbank market.

At the completion of the session, the local currency had lost 99 paisas against the US dollar. It declined by 0.54 per cent versus the US dollar, closing at Rs182.54.

The rupee declined by 0.54 per cent versus the US dollar, closing at Rs182.54 after winning three paisas and settling at Rs181.55 on Saturday, April 16. During the open market session, the Indian rupee (INR) touched an intraday high of Rs181.00 versus the US dollar.

After the International Monetary Fund (IMF) decided to resume talks with Pakistan under the $6 billion Extended Fund Facility (EFF) programme, the rupee’s seven-day winning streak versus the dollar ended today.

Considering global variables influencing the local currency, crude prices declined as concerns about slowing demand in China outweighed support despite a constrained global supply situation and the escalating Russia-Ukraine conflict.

Read more: Global oil prices climb to highest in three weeks

It is worth noting that the local currency has depreciated by 15.85 per cent (Rs24.98) since the beginning of the current fiscal year on July 1, 2021.

April 19, 2022