Tag: Pakistani Rupee

  • Pressure on Pakistani rupee may decrease in August

    Pressure on Pakistani rupee may decrease in August

    Finance Minister Miftah Ismail expressed his continued faith in Pakistani rupee’s (PKR) ability to withstand pressure despite the PKR continuing to hit historic lows versus the US dollar and suffering its biggest weekly slide in more than 20 years.

    The finance minister stated in an interview with Radio Pakistan that the political climate and the fact that import payments are being made for shipments beginning in June are both contributing factors to the pressure on the PKR.

    “Import of $80 billion were made during the last fiscal year. We are still making payments for energy commodities purchased last month. Therefore, the rupee is under pressure. However, as we are importing less in July, its effect would be reflected from next month or, I should say, next week.”

    “The rupee’s fall is connected to the political situation as well. Before July 17, the situation wasn’t like this,” he added.

    Miftah also spoke about Pakistan’s economic issues, stating that the poor export base continues to be a matter of concern.

    The local currency has continued to depreciate against the US dollar, losing 7.6 per cent last week, more than what businesses typically account for in terms of annual currency depreciation, as the inter-bank market experienced a turbulent five sessions due to renewed political uncertainty and increased worries about Pakistan’s external financing needs.

    He also revealed that one friendly country is ready for an instant investment in Pakistan.

    It is worth noting that Pakistan anticipates receiving the next International Monetary Fund (IMF) tranche before the end of the following month following the board meeting.

  • Pakistani rupee falls to record low of Rs230 versus US dollar

    Pakistani rupee falls to record low of Rs230 versus US dollar

    As the political situation in the country worsens, the Pakistani rupee (PKR) touched an all-time low versus the US dollar on Monday during intraday activity in the interbank market.

    Data from the State Bank of Pakistan (SBP) show that during intraday trade, the PKR fell to Rs230 from a rate of Rs228.37.

    As local currency fell by over 8 per cent against the greenback in the most recent trading week, its foreign exchange reserves fell below $10 billion, and inflation reached its highest point in more than a decade, worries about the country’s ailing economy have grown.

    According to Geo, the acting governor of Pakistan’s central bank, Murtaza Syed, stated this in a recent speech to foreign investors: “Markets are responding to these shocks in an unfairly broad-brush way, without paying enough attention to Pakistan’s relative strengths.”

    On Monday, a tola of 24-karat gold costs Rs147,700 in Pakistan.

    10 grammes of 24 karat gold were priced at Rs126,700. A single tola of 22-karat gold was being offered for Rs135,391 while 10 grams of 22k gold was being traded for Rs116,141.

  • Pakistani rupee plunges to Rs227 against US dollar at midday trading

    Pakistani rupee plunges to Rs227 against US dollar at midday trading

    On Thursday, the rupee’s decline against the US dollar reached an all-time low of Rs227 in the interbank market.

    Experts blame the losses on political unrest and the fact that the dollar is bolstering against other currencies as well, according to DAWN. On Wednesday, the rupee had a closing value of Rs224.92.

    According to the Foreign Exchange Association of Pakistan (FAP), the local currency fell by Rs2.08 to Rs227 versus the US dollar when the session started today at 10:57 AM.

    According to experts, the country’s political unrest had reduced investor confidence, which had caused importers to worry and “unnecessarily” buy dollars from the market. He claimed that as a result, there was an increase in the interbank market’s demand for dollars.

    Furthermore, over the past week, the dollar’s value had increased against over 40 currencies, including the British pound and the Japanese yen, which had an impact on the local market’s use of the rupee, according to Bostan.

    After reaching Rs211.93 on June 22, the local currency climbed to Rs204.56 in the first week of July. When the country’s staff-level agreement with the international lender was reached on July 15, it briefly appreciated but again continued to depreciate against the US dollar.

  • Interbank trade: Pakistani rupee falls to all-time low of Rs214.74 against US dollar

    Interbank trade: Pakistani rupee falls to all-time low of Rs214.74 against US dollar

    As a result of the ruling PML-N’s defeat in the Punjab by-elections, which has caused political turmoil in the nation, the Pakistani rupee (PKR) on Monday fell to an all-time low of Rs214 against the US dollar in interbank trade.

    Today’s intraday trade saw Rs3.79 depreciation of the local currency against the US dollar. It is still unknown where the local currency will end up after the day’s trading.

    The local currency has reached an all-time low because the US dollar was trading for Rs214.74 on the interbank market, according to the Exchange Companies Association of Pakistan (ECAP).

    Pakistani rupee’s record low against the dollar was Rs211.48 on June 21. Since then, the currency has remained erratic.

    The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index is also down, with the bears controlling trading at the bourse. As of 11:34 am, the index was trading at 41,532.46 points, down nearly 550 points.

    Pressure on import payments and political unpredictability, according to Samiullah Tariq, Head of Research at Pakistan-Kuwait Investment Company, are to blame for the rupee’s decline.

    The results of the by-election on Sunday, according to the analyst, provided clarity, but the market is still waiting for a plan of action.

    PKR is weakening, but Arif Habib Limited analyst Ahsan Mehanti expressed optimism that it would soon rebound because all predictions favour the local currency.

    Mehnti was of the view that Pakistan will benefit greatly from the funds it will receive from the International Monetary Fund (IMF) as a result of the staff-level agreement.

  • 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.

  • Pakistani rupee falls to a new all-time low of Rs205 against the US dollar

    Pakistani rupee falls to a new all-time low of Rs205 against the US dollar

    In the interbank market today, the Pakistani Rupee (PKR) plummeted below its previous record low versus the US Dollar (USD).

    The local currency lost Rs1.30 in the interbank market today, depreciating by 0.63 per cent against the US dollar and closing at Rs205.16. During today’s open market session, the local currency reached an intraday high of Rs203.75 versus the US dollar.

    The PKR was trading between Rs206 to Rs208 against the US dollar in the evening. The rupee’s devaluation was in line with market expectations, with traders expecting the local currency to fall even lower if Pakistan fails to persuade the International Monetary Fund (IMF) on its fiscal year 2022-23 budget.

    The Financial Action Task Force (FATF) meeting in Berlin, which starts today, is another reason that is likely to have influenced the FX market. On the 15th and 16th of June, issues concerning Pakistan will be discussed.

    In today’s interbank market, the PKR reversed gains versus the majority of major currencies. It fell 22 paisas against the Canadian dollar (CAD), 34 paisas against the Saudi riyal (SAR), 35 paisas against the UAE dirham (AED), 62 paisas against the British pound sterling (GBP), and Rs1.25 versus the Euro (EUR).

  • Pakistani rupee gains ground for the third consecutive day

    Pakistani rupee gains ground for the third consecutive day

    Pakistani rupee (PKR) gained 60 paisas after closing in the inter-bank market on May 31, as a return of clarity on the economic front and a reduction in domestic political turmoil boosted it for the third consecutive day.

    According to the State Bank of Pakistan (SBP), the local currency closed at Rs198.46 after gaining 60 paisas (0.30 per cent) in the day. The local currency concluded at Rs199.06 on Monday, up 70 paisas, or 0.35 per cent, from its previous closing.

    On the other hand, oil prices, a key indicator of currency parity, rose on Tuesday as the EU decided to cut Russian oil imports, fueling fears of a tighter market already stressed for supply ahead of the peak summer driving season in the US and Europe.

    The appreciation arrived as European Union leaders decided to slash 90 per cent of Russian oil imports by the end of this year, breaking a deadlock with Hungary over the bloc’s heaviest sanctions against Moscow since the invasion of Ukraine.

    The rise in oil prices is another bad news for Pakistan, which has seen its import bill increase, putting strain on external payments while increasing market demand for dollars.

  • Pakistani rupee drops to Rs202 as market ambiguity extends

    Pakistani rupee drops to Rs202 as market ambiguity extends

    Pakistani currency slid to another historic low of Rs202 versus the US dollar on May 25 and lost ground in the interbank market.

    It fell 0.25 per cent against the US dollar today, closing at Rs201.92 after losing 51 paisas in the interbank market. During today’s open market session, the rupee hit an intraday low of Rs202.12 against the US dollar. In two weeks, the dollar has gained Rs15.23 against the rupee, and Rs18.98 since the new regime took power.

    The political situation in Pakistan also played a significant role in keeping the forex market on its toes, as players on both sides of the fence intensified their narratives against one another. Riots have broken out across the country after the month-old government shut down roads leading to Islamabad, where former Prime Minister Imran Khan’s party is planning a large rally calling for the removal of the incumbent and immediate general elections.

    International oil prices maintained Monday’s gains as concerns about tight global supply continued to outweigh short-term trade forecasts. Brent crude rose to $114 per barrel, while West Texas Intermediate (WTI) crude in the United States rose to $111.

    Today, the PKR fell further against the majority of the other major currencies in the interbank market. It fell two paisas against the Pound Sterling (GBP), 13 paisas against the Saudi Riyal (SAR), and 38 paisas against the Australian Dollar (AUD).

    In today’s interbank currency market, it gained 12 paisas against the Canadian Dollar (CAD) and 17 paisas against the Euro (EUR).

    It is worth noting that the PKR reported losses against the greenback for the fourteenth day in a row.

  • Gold prices in Pakistan hit historic high of Rs143,600 per tola

    Gold prices in Pakistan hit historic high of Rs143,600 per tola

    Gold prices in Pakistan continued to rise as the Pakistani currency fell deeper versus the US dollar, pushing the precious metal to a high of Rs143,600 per tola.

    The price of gold per tola increased by Rs1,950 per tola, as per the All Sindh Sarafa Jewellers Association (ASSJA). Moreover, the price per 10 gramme jumped by Rs1,672 to Rs123,114.

    Following yesterday’s gain of Rs1,950 per tola, the gold price has risen by Rs5,250 in the last four days (Friday-Tuesday).

    During the current economic crisis, gold has resurfaced as a secure investment, and consumers have been eagerly buying gold to preserve their savings against inflation.

    The rupee’s collapse, which reached an all-time low of Rs201.41 versus the US dollar in the interbank market, compelled the gold trading body to drastically raise the bullion price.

    The price of yellow metal fell by $4 per ounce on the international market to settle at $1,858. When compared to the Dubai market, gold prices in Pakistan are roughly Rs1,500 lower.

  • Pakistani Rupee drops to a new low of Rs195.74 against US dollar

    Pakistani Rupee drops to a new low of Rs195.74 against US dollar

    In today’s interbank market, the Pakistani Rupee (PKR) plummeted to another historical low versus the US Dollar (USD). It fell 0.80 per cent against the US dollar, closing at Rs195.74 after losing Rs1.56 in the interbank market.

    During today’s open market session, the local currency fell to an intraday low of Rs197 versus the US dollar. Since last week, the dollar has gained Rs9.06 against the PKR, and Rs12.81 since the new government took office on April 11, 2022.

    The local currency hit a new all-time low against the dollar on May 17, ahead of Pakistan’s preliminary consultations with the International Monetary Fund (IMF) in Doha on Wednesday (tomorrow) to revive the country’s stalled multibillion-dollar bailout package.

    On Tuesday, oil prices rose to their highest level in seven weeks, spurred by the European Union’s continued push for a ban on Russian oil imports, which may dangerously constrain supplies. Brent crude hit a high of $115, its best since March 28, while WTI crude in the United States rose 78 cents, or 0.7 per cent, to $114.98.