Tag: Pakistani Rupee

  • Pakistani rupee crashes to historic low of Rs194 against US dollar

    Pakistani rupee crashes to historic low of Rs194 against US dollar

    During the trading session on Monday, the Pakistani rupee (PKR) maintained its declining trend, touching Rs194, its worst rate versus the US dollar. At the interbank, the greenback strengthened by Rs1.47 during the trading hours.

    The General Secretary of the Exchange Companies Association of Pakistan, Zafar Paracha said that the greenback climbed by Rs11.07 since the new government took government, while debt has increased by Rs1,400 billion due to the disparity.

    Pakistani currency lost 3.1 per cent of its value against the US dollar in the previous week in the interbank market, with Pakistan’s currency hitting new record lows to end the week at Rs192.53, its worst closing in history.

    Read more: Pakistani Rupee crashes to a record low against US dollar 

    The local currency fell in value across the board as concerns about the economy, declining foreign currency reserves, and worsening trade imbalance intensified. Concerns over the International Monetary Fund (IMF) programme have also caused fear and speculation in the market.

  • Pakistani Rupee crashes to a record low against US dollar 

    After a fourth consecutive session of losses on May 10, Pakistan’s currency hit an all-time low in the interbank market due to a lack of clarity on foreign cash inflow and a stronger US dollar.

    The rupee ended the day at Rs188.66, down Rs1.13, or 0.60 per cent, according to the State Bank of Pakistan (SBP). After a 0.48 per cent decline on Monday, the rupee finished at Rs187.53. Prior to Tuesday, the PKR’s lowest closing was Rs188.18 on April 7, 2022.

    Oil prices, a key indicator of currency parity, dipped in tumultuous trade on Tuesday as the market weighed the impact of expected European Union penalties on Russian oil against demand concerns stemming from China’s coronavirus lockdowns, a strong dollar, and rising recession threats.

    Read more: Pakistani rupee nearing an all-time low

    Despite the decline, the price of oil remains far above $100 per barrel, a high level for oil-importing nations like Pakistan, which is already grappling with a growing current account deficit and dwindling foreign exchange reserves.

  • Pakistani rupee nearing an all-time low

    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.

  • US Dollar continues to slide, reaches Rs183

    US Dollar continues to slide, reaches Rs183

    The US Dollar fell by Rs1.43 shortly after the interbank market opened, and is now being traded at Rs183.25.

    Following days of depreciation, the Pakistani rupee (PKR) rebounded against the US dollar in the interbank market on April 11, signaling that the currency value is stabilizing.

    On Friday, the Pakistan Stock Exchange (PSX) index KSE-100 reversed course and experienced an uptrend, adding 657.75 points, or 1.50 per cent, to close at 44,444.58 points, up from 43,786.83 points the previous working day.

    The KSE-100 index began on Monday morning to strong investor optimism, following a historic weekend in which Imran Khan became the first prime minister in Pakistan’s history to be removed by a vote of no confidence, putting an end to the country’s ongoing political crisis.

    According to foreign currency dealers, the greenback is now selling at Rs183.20, after weakening Rs1.83 versus the PKR in early trade.

  • Pakistani rupee records impressive gains against US Dollar, highest single-day gain

    Pakistani rupee records impressive gains against US Dollar, highest single-day gain

    In the intra-day trade on Friday, the Pakistani rupee (PKR) gained an impressive Rs3.5 against the US dollar, the highest single-day gain in two years after the Supreme Court (SC) pronounced the National Assembly (NA) deputy speaker order unconstitutional and restored the NA.

    The US dollar is currently trading at Rs185, as per foreign currency dealers, after weakening Rs3.5 versus the local currency in early trade. The USD is currently trading for above Rs186 on the open market.

    On Thursday, the rupee concluded at Rs188.18 against the USD in the interbank market.

    Consequently, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index, reversed its downtrend shortly after starting on Friday and surpassed the 44,000 mark, a day after the Supreme Court of Pakistan annulled the deputy speaker’s decision against a no-confidence motion.

    Considering the trading which continued at 44, 198 on the Pakistan Stock Exchange, the KSE-100 benchmark index gained 411 points.

    The stock market has been under pressure since April 4, when it crumbled, losing over 900 points amid Pakistan’s ongoing political crisis, which arose after the National Assembly deputy speaker declared Prime Minister Imran Khan’s no-confidence resolution unconstitutional.

    SBP’s rate increase of 250 basis points and establishment of cash margins on 177 commodities is a marker that the economic system is in a slump and that prior initiatives were inadequate. This protective approach will aid in limiting the import of certain products, consequently bolstering the balance of payments.

  • ‘Third-best currency’: Rupee continues to gain ground against US Dollar

    ‘Third-best currency’: Rupee continues to gain ground against US Dollar

    Since October, the Pakistani Rupee has continued to gain ground against the US Dollar, becoming the third best-performing currency of the Asian continent.

    After a month-long depreciation against the rupee, the US dollar is being sold at 158.69 in the interbank market as of Nov 10. Only South Korean and Indonesian currencies have performed better than the PKR that has seen 3.1% appreciation over the past four weeks.

    Pakistani Rupee against US Dollar. Xe.com

    Following a deal with the International Monetary Foundation (IMF) by the Imran-led government in May 2019, the PKR had taken a nosedive against USD. It was being sold at 110 in April 2018, and by July 2020, 1USD was equivalent to PKR169. However, since Aug, the dollar has been shedding weight against the PKR and other foreign currencies.

    Money dealers in the market attributed this rally of rupee against the US dollar to encouraging economic indicators as well as the global downfall of the greenback. On the other hand, importers are also being careful in buying goods from their foreign suppliers owing to the second wave of coronavirus, they claimed.

    Forex Association of Pakistan President Malik Bostan quoted by a local media outlet said the dollar will likely to depreciate further amid an increase in exports. He sounded hopeful of the PKR’s appreciation against the USD, saying the strong economic outlook of Pakistan will help boost its foreign exchange reserves.

    He said that Pakistan’s reliance on the dollar may also reduce — that would result in a stronger PKR, as China and Pakistan are now looking to trade in Yuan, the Chinese currency. Pakistan’s biggest import bills come from China.