Tag: Pakistani Rupee

  • Pakistani rupee remains unchanged for the 4th time in a week

    Pakistani rupee remains unchanged for the 4th time in a week

    The Pakistani rupee (PKR) once again remained unchanged versus the US dollar in the interbank market during the final trading session of the week.

    It is worth noting that this is the fourth time that the local currency has shown a 0.00 per cent change this week. The only change witnessed in the rupee’s value was reported by the State Bank of Pakistan (SBP) on December 1, when the rupee appreciated only 0.12 per cent to close at Rs223.69.

    The rupee closed at Rs223.69 against the US dollar on Friday. On a weekly basis, the PKR registered an increase of 0.11 per cent against the greenback.

    Additionally, the SBP’s foreign exchange reserves declined by $327 million every week, totaling $7.5 billion as of November 25, 2022.

    For Pakistan, which has been frantically pursuing dollar inflows to meet its balance-of-payments needs, the reserve position is crucial. A low reserve level puts pressure on the currency, which has recently only experienced stability.

    As data showing increased US consumer spending in October encouraged investor hopes that the peak in interest rates was on the horizon, the dollar held steady on Friday but was pinned down near 16-week lows against a basket of major currencies.

    A stronger US dollar limited gains as oil prices, a major metric of currency parity, edged up in Asian trading on Friday on expectations for further easing of COVID controls in China, which might aid in the recovery of demand in the world’s second-largest economy.

  • PKR remains largely stable after Pakistan receives $500 million

    PKR remains largely stable after Pakistan receives $500 million

    Strangely, the Pakistani rupee (PKR) did not increase or decrease at the time of closing on Tuesday. The PKR’s closing rate was Rs223.95 and showed no change from its previous closing rate of Rs223.95.

    The local currency only declined by one paisa on Monday.

    After falling for four straight days, the rupee’s slide against the US dollar came to an end today. The market confidence was bolstered by the Finance Division’s earlier confirmation of receiving $500 million from the Asian Infrastructure Investment Bank (AIIB).

    What do Pakistanis think of the current dollar exchange rate?

    Some Twitter users claim that the government is controlling exchange rates, which will harm the economy in the long run since exporters are reluctant to accept payments made through banking channels and question why they should sell dollars to banks for less when the open market price is more than Rs250.

    The daily dollar rate announcement from SBP, according to a Twitter user, has lost all relevance because “the rate is controlled and not determined by market forces. The hefty difference between the interbank rate and the open market rate proves the point.”

  • Pakistani rupee depreciates for the 5th day in a row, settles at Rs222.67

    Pakistani rupee depreciates for the 5th day in a row, settles at Rs222.67

    The Pakistani rupee (PKR) lost 0.12 per cent on Thursday in the inter-bank market, continuing its downward trend against the US dollar.

    The rupee dropped by Rs0.26 and ended the day at Rs222.67. The rupee has decreased by Rs1.25, or 0.56 per cent, over the last five trading sessions.

    PKR continued to lose value against the US dollar on Wednesday, falling Rs0.50 (0.22 per cent) to settle at Rs222.41.

    In a significant breakthrough on Wednesday, the State Bank of Pakistan (SBP) promised the Standing Committee on Finance of the National Assembly that action would be taken against banks by the end of the month for allegedly overcharging importers when establishing Letters of Credit.

    The SBP informed the banks in person about the practise and counselled them to rationalise the margins they were charging customers, according to information provided to the committee.

    Additionally, Pakistan’s external debt and liabilities reduced by $3.282 billion from $130.196 billion as of June 30, 2022, to $126.914 billion at the end of September 2022.

    The dollar recovered globally on Thursday as strong US retail data challenged the recent narrative that inflation is declining and US interest rates do not need to increase significantly more.

    The US reported overnight that retail sales increased 1.3 per cent in October, exceeding economists’ expectations of 1.0 per cent, a positive sign but one that dashed expectations for a pause in rate increases.

    The dollar index, which compares the value of the dollar to six important peers, increased 0.18 per cent to 106.46.

    A key indicator of currency parity, oil prices fell on Thursday due to easing geopolitical tensions and worries about Chinese demand, though signs of tighter supply, such as lower US inventories, provided support.

  • PKR suffers losses against USD for 5th consecutive day

    PKR suffers losses against USD for 5th consecutive day

    The State Bank of Pakistan and the government were unable to stabilise the exchange rate as the Pakistani rupee lost value for the fifth straight day on Monday after falling 46 paisas against the US dollar in the interbank market.

    State Bank of Pakistan reports that the local unit decreased by 0.37 per cent to close at Rs219.71.

    The closing price in the interbank market, according to the Exchange Companies Association of Pakistan (ECAP), was Rs220 as opposed to Rs219.50 in the previous trading session.

    US dollar dropped 30 paise in the open market, closing at Rs225.70 as opposed to Rs226 the previous session. Its price on October 11 was Rs219

    The optimistic market sentiments that appeared following the nomination of Ishaq Dar as finance minister in anticipation of his potential to secure dollar inflows appeared to have disappeared.

    In FY23, Pakistan would need around $32 billion to pay for its foreign debt, mostly to service it, as well as to close its current account deficit. In a recent interview with a foreign news outlet, the finance minister stated that he will seek to reschedule approximately $27 billion in non-Paris Club debt, the majority of which is owed to China.

  • Pakistani rupee finally snaps 13-day winning streak versus US dollar

    Pakistani rupee finally snaps 13-day winning streak versus US dollar

    The Pakistani rupee (PKR) on Wednesday finally stopped rising against the US dollar after 13 sessions as it dropped by 0.04 per cent in the inter-bank market.

    It dropped nine paisas in today’s interbank market to settle at Rs217.88, depreciating by 0.04 per cent against the USD. During today’s open market session, the local currency was quoted at a day low of Rs217.65 against the US dollar.

    The recent increase in the value of the rupee is linked to a change in sentiment and the central bank’s operations against participants in currency speculation.

    On Wednesday, as traders prepared for US inflation data and its implications for future Federal Reserve rate hikes, the dollar reached new 24-year highs internationally.

    After the International Monetary Fund (IMF) predicted that Pakistan’s inflation rate will be 19.9 per cent in 2023 as opposed to 12.1 per cent in 2022, the rupee halted its 13-day winning run.

    The lender predicted Pakistan’s GDP growth rate would be 3.5 per cent in 2023 compared to 6 per cent in 2022, however this does not take the current floods into account.

    Wednesday also saw a global decline in oil prices for the third day in a straight as investors feared the impact of increasing COVID-19 regulations in China and mounting global economic threats on fuel demand.

  • Pakistani rupee continues to rise for 13th consecutive session

    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.

  • Pakistani rupee becomes best performing currency after recording impressive gains

    Pakistani rupee becomes best performing currency after recording impressive gains

    The unpredictable Pakistani rupee, which made the highest rise of 3.9 per cent over five working days to Rs219.92 against the dollar on anticipation of sizable inflows of foreign cash, was dubbed the “world’s best-performing currency” in the week that concluded on Friday.

    According to analysts monitoring currency movements, the rupee proved to be the best-performing currency throughout the week.

    Friday marked the rupee’s 11th straight successful working day since the current finance minister, Ishaq Dar, announced his return to Pakistan by ending a five-year self-exile last month, according to the Express Tribune.

    Clearly, Dar continued his previous strategy of defending the rupee from the assault of the US currency after assuming power. He thought the rupee was undervalued at its all-time low of roughly Rs240 to the dollar in July and suspected commercial banks of manipulating the rupee’s value to advance their own interests.

    In a swift move, Pakistani officials notified Moody’s that during recent meetings with multilateral creditors, the government had received an additional funding commitment of more than $2.5 billion from the Asian Development Bank.

    This was done while strongly responding to Moody’s downgrading Pakistan’s credit rating to Caa1. The World Bank has also committed to providing an additional $1.3 billion in finance for infrastructure improvement and other projects during the current fiscal year.

  • US dollar will go below Rs200 in coming months, says Ishaq Dar

    US dollar will go below Rs200 in coming months, says Ishaq Dar

    Finance Minister Ishaq Dar said on Monday that the actual worth of the US dollar is less than Rs200 and that the Pakistani rupee (PKR) will strengthen in the coming months with the correct policy measures.

    Dar predicted that eventually, the value of the US dollar will go below Rs200 while speaking on the Geo News show Capital Talk.

    According to Geo, the minister stated that the local currency value had been manipulated and threatened speculators with harsh punishment. He noted that the British pound just hit an all-time low against the dollar but added that the rupee will strengthen since it is currently undervalued despite the growth of the US currency.

    It is important to note that the Pakistani rupee strengthened today in relation to the US dollar by 0.51 per cent, closing at Rs227.29 after gaining Rs1.16 in the interbank market. The rupee has risen against the dollar for seven days running.

    It is important to note that after Ishaq Dar was appointed finance minister, currency speculation seems to have decreased.

  • 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.

  • Pakistani rupee inching towards all-time low once again

    Pakistani rupee inching towards all-time low once again

    In the first hours of trade on Tuesday, the Pakistani rupee (PKR) fluctuated between Rs238 and Rs239 as it lost value versus the US dollar in the interbank market.

    During intra-day trade at roughly 10:20 am, the rupee was quoted at Rs237.99, a devaluation of Rs0.08 or 0.03 per cent versus the greenback.

    In the interbank market on Monday, the local currency fell for the 12th straight session to end at Rs237.91 as pressure on the currency increased due to the expectation of a higher import bill and the globally strong dollar.

    The PKR has continued to lose value after receiving the IMF tranche of $1.2 billion at the beginning of September and has not yet seen a positive session this month.

    According to experts, the country’s borrowing requirements would rise in the wake of the devastating flash floods, which will also boost the cost of imports. As floods destroy standing crops in Sindh and lower Punjab, the country’s borrowing requirements may rise further in the near future.