Tag: open market rates

PKR registers only 0.92% rise against US dollar since the onset of 2024

The Pakistani rupee (PKR) maintained its upward trajectory for the 13th consecutive week, gaining 12.88 paisa against the US dollar and settling at PKR 279.28 per USD.

This positive momentum marks a notable shift from the previous week’s closing rate of PKR 279.41 per USD.

Analysing the broader financial trends, the PKR has appreciated against the US dollar by 6.71 rupees, or 2.4 per cent, during the current financial year. Looking at the calendar year, the PKR has shown a gain of 2.58 rupees, or 0.92 per cent.

Friday’s trading session witnessed the PKR displaying strength as it appreciated by over 6 paisa. The intraday high (bid) reached 279.9, while the low (ask) touched 279.6, showcasing the currency’s resilience in the face of market fluctuations.

In the open market, exchange companies quoted buying rates at 278.89 and selling rates at 281, contributing to the overall positive sentiment surrounding the PKR.

Comparatively, against major currencies, the PKR experienced a marginal loss of 26.91 paisa against the Euro, closing at 300.87.

Meanwhile, the British Pound became more affordable by 20.31 paisa, closing at 352.33. The Swiss Franc saw a decline of 1.59 rupees, closing at 318.89, and against the Japanese Yen, the PKR gained 1.71 paisa, closing at 1.8695.

In the global currency market, the Chinese Yuan lost 0.4 paisa, closing at 38.82, while the Saudi Riyal closed at 74.47, experiencing a marginal loss of 1.43 paisa. The U.A.E. dirham also saw a decrease in value of 1.57 paisa, settling at 76.05.

Shifting focus to the money market, the benchmark 6-month Karachi Interbank bid and offer rates experienced a 9 basis point increase, reaching 21.05 per cent and 21.3 per cent, respectively.

This upward movement in yields follows the State Bank of Pakistan (SBP) maintaining the policy rate at 22 per cent for the fifth consecutive meeting, contributing to the evolving financial landscape.

February 10, 2024
Pakistani rupee finally ends 28-day winning streak, loses against US dollar

The Pakistani rupee’s remarkable 28-day winning streak against the US dollar came to an end today, as it recorded losses following an initial trade opening at Rs278.5 in the interbank market.

In the morning, the rupee had steadied, maintaining a level of Rs276 against the greenback. Subsequently, between 1:00 PM and 2:35 PM, the interbank rate dipped to Rs278 before settling at Rs277 for the rest of the day.

Open market rates, observed across various currency exchange counters, ranged from Rs277 to Rs279 throughout the day.

At the close of the trading day, the PKR experienced a depreciation of 0.07 per cent, concluding at Rs277.03 after losing 20 paisas against the US dollar.

Despite today’s setback, it is noteworthy that the disparity between interbank and open market rates has significantly decreased by Rs60 since September 4th. The rates have fluctuated between as low as Rs277 and sporadic spikes up to Rs280 today.

October 17, 2023
Overseas Pakistanis send home remittances worth $2.5 billion, marking a seven-month high

According to data from the State Bank of Pakistan (SBP), remittances sent by overseas Pakistanis to their home country hit a seven-month high of $2.5 billion in March, which is attributed to Ramadan and Eid-ul-Fitr.

Compared to the prior month of February, the inflow of workers’ remittances increased by 27 per cent, but it was 11 per cent lower than March 2022. The legal channels for sending funds to family members were used more frequently, resulting in comparatively high inflows as the difference between the interbank and open market rates decreased.

Samiullah Tariq, the head of research at Pakistan-Kuwait Investment Company, described the increase as a positive sign. He explained that the kerb and interbank rates have minimal differences. Furthermore, the historical trend suggests that overseas Pakistanis send record-high remittances ahead of Eid festivals each year. The Ministry of Finance predicts that remittances will “further improve due to positive seasonal and Ramadan factors.”

The central bank reported that the cumulative inflow of $20.5 billion during the first nine months of the fiscal year 2022-23 led to a 10.8 per cent decrease in remittances compared to the same period last year. In addition, it is important to note that this month’s remittances have surpassed the trade deficit data of the Pakistan Bureau of Statistics (PBS), increasing the possibility of a current account surplus.

The Ministry of Finance also highlighted in its monthly outlook report that the current account deficit is expected to remain on the lower side due to the economic factors contributing to the figures. It should also be noted that the SBP trade deficit data point is usually even lower than the PBS trade deficit.

April 10, 2023