Tag: Pakistani Rupee

  • PKR sustains positive momentum, gains 0.04% against US dollar in ninth consecutive session

    PKR sustains positive momentum, gains 0.04% against US dollar in ninth consecutive session

    In the inter-bank market, the Pakistani rupee continued its positive trend against the US dollar for the ninth consecutive session on Monday, appreciating by 0.04 per cent to settle at Rs280.24, reflecting a gain of Re0.12, according to the State Bank of Pakistan (SBP).

    During the preceding week, the Pakistani rupee sustained its upward movement, appreciating by Rs1.04 or 0.37 per cent against the US dollar, settling at 280.36 in the inter-bank market.

    This surge in value is attributed to the recent announcement of a staff-level agreement (SLA) between Pakistan and the International Monetary Fund (IMF) on the first review of the $3 billion Stand-by Arrangement (SBA). Consequently, the approval of the second tranche of the package ensued.

    The IMF Executive Board completed the first review of the SBA last week, facilitating an immediate disbursement of $700 million.

    As of January 5, the foreign exchange reserves held by the State Bank of Pakistan amount to $8.15 billion, with expectations of further augmentation through IMF inflows.

    On the global front, the US dollar experienced a decline on Monday amid renewed anticipations of a Federal Reserve rate cut in March.

    Simultaneously, the Chinese yuan faced challenges, hovering near a one-month low ahead of forthcoming economic data releases.

    The likelihood of a Fed cut in March gained traction following unexpected December data indicating a decline in US producer prices, prompting a slide in US Treasury yields. The US dollar index remained stable at 102.50, exhibiting minimal fluctuations in recent sessions.

    In the realm of oil prices, a significant indicator of currency parity, a slight uptick was observed on Monday. This movement was influenced by concerns over potential supply disruptions in the Middle East, following strikes by US and British forces aimed at preventing Houthi militia in Yemen from attacking ships in the Red Sea.

  • Pakistani rupee records 9th consecutive surge, gains Rs1.04 against US dollar

    Pakistani rupee records 9th consecutive surge, gains Rs1.04 against US dollar

    In the currency markets, the Pakistani rupee (PKR) maintained its winning streak for the 9th consecutive week, appreciating by 1.04 rupees against the US dollar.

    The local unit closed at PKR 280.36 per USD, showcasing resilience in the face of economic fluctuations. During today’s trading session, the PKR experienced fluctuations, reaching an intraday high bid of 279 and a low ask of 281.5.

    Exchange companies in the open market quoted the dollar at 279.15 for buying and 281.50 for selling, reflecting the ongoing strength of the PKR against the greenback.

    Notably, the PKR also demonstrated gains against major currencies, gaining 78.58 paisa against the Euro, closing at 307.85.

    The British Pound saw a decrease of 58.38 paisa, settling at 358.18, while the Swiss Franc experienced losses of 1.41 rupees, closing at 329.08.

    However, the Japanese yen posed a slight challenge, as the PKR lost 0.09 paisa, closing at 1.934 against 1.933 from the previous session.

    Overall, the PKR’s robust performance against the US dollar and several major currencies underscores the resilience and stability of Pakistan’s currency in the global financial landscape.

  • IMF greenlights $700 million for Pakistan’s economic stabilisation programme

    IMF greenlights $700 million for Pakistan’s economic stabilisation programme

    In a significant development, the International Monetary Fund (IMF) successfully concluded its first review of Pakistan’s economic reform programme on Thursday.

    This programme, backed by a $3 billion and-by a arrangement (SBA), has now received a boost with the immediate approval and disbursement of $700 million, as confirmed by the finance ministry.

    According to an official statement from the ministry, the completion of the first review by the IMF’s Executive Board, coupled with the payment of $528 million in special drawing rights, has elevated the total disbursements under the SBA to $1.9 billion.

    The infusion of funds from the IMF, combined with recent inflows from multilateral lenders, is anticipated to contribute to the stability of the Pakistani rupee, which has demonstrated relative steadiness over the past few months.

    The finance ministry highlighted that this fresh tranche would play a crucial role in facilitating rollovers from allied countries, including the United Arab Emirates, China, and Saudi Arabia.

    Additionally, it is expected to alleviate external debt repayment pressures faced by Pakistan.

    This positive development traces back to June 2023, when the IMF Executive Board granted approval for a much-needed nine-month arrangement with Pakistan to support its economic stabilisation program.

    The initial disbursement of $1.2 billion was promptly released in July, with the remainder subject to two quarterly reviews over the programme’s duration.

    The current IMF programme is slated to conclude in the second week of April, with the recent disbursement marking a significant step towards its successful execution.

    Notably, a staff-level agreement was reached in November 2023 between the IMF staff and Pakistani authorities, paving the way for the first review under Pakistan’s SBA.

    This agreement was contingent upon subsequent approval by the IMF’s Executive Board.

    Looking ahead, Pakistan is poised to receive the remaining amount in March under the $3 billion SBA.

    Despite facing challenging conditions, particularly persistently high inflation, which rose to 29.7 per cent in December from 29.2 per cent in the preceding month, Pakistan remains committed to navigating through these economic challenges with the assistance of international financial institutions.

  • PKR gains 2 paisa to close at Rs281.11 against US dollar

    PKR gains 2 paisa to close at Rs281.11 against US dollar

    The Pakistani rupee sustained its upward trend against the US dollar for the seventh consecutive session, exhibiting a slight 0.01 per cent appreciation in the interbank market on Thursday. 

    According to the State Bank of Pakistan (SBP), the Pakistani rupee concluded at Rs281.11, marking an increase of Rs0.02. 

    In the preceding session, the rupee recorded a marginal gain, settling at Rs281.13 against the US dollar.

    Comparatively, the PKR experienced a decline of Rs1.47 against the Euro, closing at Rs308.63 compared to the previous value of Rs307.16. 

    The British Pound strengthened by Rs1.79, concluding at Rs358.77 in contrast to the previous day’s Rs356.98. 

    The Swiss franc witnessed an increase of 63.72 paisa, closing at Rs330.49 versus Rs329.85 from the prior session.

    Against the Japanese yen, the PKR gained 0.63 paisa, concluding at Rs1.9333 compared to Rs1.9396 a day ago. 

    On a global scale, the US dollar remained stable as traders awaited US inflation data to assess the validity of rate-cut predictions. 

    The dollar, which had experienced a decline in the latter months of 2023 following signals from the Federal Reserve indicating an end to rate hikes, has since stabilised in early 2024 as traders factored in substantial cuts.

  • 6th straight gain: Pakistani rupee closes at Rs281.13 against dollar

    6th straight gain: Pakistani rupee closes at Rs281.13 against dollar

    In a continued trend, the Pakistani rupee exhibited resilience against the US dollar, marking its sixth consecutive session of appreciation with a marginal uptick of 0.03 per cent in the inter-bank market on Wednesday. 

    The State Bank of Pakistan (SBP) reported a settlement at Rs281.13, reflecting an increase of Re0.09.

    This positive momentum follows Tuesday’s marginal gain when the rupee settled at Rs281.22 against the US dollar. 

    Against major currencies, the Pakistani rupee demonstrated notable strength, gaining 94.44 paisa against the Euro, closing at Rs307.16 compared to the previous value of Rs308.11.

    The British Pound observed a decrease of Rs1.38, closing at Rs356.98 in contrast to the previous day’s rate of Rs358.36. 

    Similarly, the Swiss franc experienced losses of Rs1.86, closing at Rs329.85 compared to Rs331.71 from the preceding session.

  • Interbank closing: PKR continues winning streak, settles at Rs281.22

    Interbank closing: PKR continues winning streak, settles at Rs281.22

    The Pakistani rupee (PKR) extended its upward trend against the US dollar for the fifth consecutive session, gaining 0.02 per cent in the inter-bank market on Tuesday.

    The State Bank of Pakistan (SBP) reported that the rupee concluded at Rs281.22 after a rise of Re0.06. In the preceding session on Monday, the rupee had experienced a slight increase, settling at Rs281.28 against the US dollar.

    On a global scale, the US dollar took a pause in its rally on Tuesday, with traders expressing confidence in multiple Federal Reserve rate cuts this year.

    This optimism is based on the belief that the slowdown in US inflation is significant.

    Meanwhile, in the cryptocurrency realm, bitcoin maintained its position near the highest level since April 2022, driven by growing expectations of the imminent approval of spot bitcoin exchange-traded funds (ETF).

    These market movements were influenced, in part, by the New York Fed’s recent Survey of Consumer Expectations, revealing that US consumers’ short-term inflation expectations in December reached the lowest level in almost three years.

    A key reading on US inflation is scheduled later in the week, offering additional insights into the Federal Reserve’s potential room for interest rate adjustments this year.

    Futures currently indicate the pricing in of nearly 140 basis points worth of easing by the Fed in the coming year.

    Against a basket of currencies, the US dollar experienced a slight decline of 0.08 per cent, settling at 102.22, following a 1 per cent increase in the previous week.

  • Winning streak: Pakistani rupee appreciates 0.04% in fourth consecutive session

    Winning streak: Pakistani rupee appreciates 0.04% in fourth consecutive session

    In a resilient display, the Pakistani rupee continued its upward trajectory against the US dollar, marking gains for the fourth consecutive session in the interbank market on Monday. 

    The State Bank of Pakistan (SBP) reported a noteworthy appreciation of 0.04 per cent, with the rupee settling at Rs281.28 after a rise of Re0.12.

    This positive trend extends the rupee’s recent performance, as it achieved a 0.16 per cent appreciation during the preceding week, settling at Rs281.40 against the US dollar in the inter-bank market. 

    Impressively, this marks the eighth consecutive week of the local currency advancing against the greenback.

    The momentum driving the rupee’s strength can be attributed to the recent announcement of a staff-level agreement (SLA) between Pakistan and the International Monetary Fund (IMF). 

    This agreement pertains to the first review of the $3 billion standby arrangement (SBA), reinforcing investor confidence in Pakistan’s economic stability.

    A significant development contributing to this positive outlook is the notable increase in foreign exchange reserves held by the State Bank of Pakistan. 

    According to SBP data from the previous week, the central bank’s reserves surged by $464 million on a weekly basis, reaching $8.2 billion as of December 29.

    Internationally, the US dollar maintained stability on Monday, with investors eagerly awaiting a crucial US inflation report later in the week. This report is expected to provide clarity on the Federal Reserve’s monetary policy outlook. 

    The greenback’s recent rally was supported by a rebound in US Treasury yields as traders adjusted their expectations regarding the pace and scale of potential Fed cuts this year. 

    This cautious optimism globally has complemented Pakistan’s positive economic indicators, contributing to the sustained strength of the Pakistani rupee against the US dollar.

  • PKR ends week in green, settles at Rs281.4 vs USD

    PKR ends week in green, settles at Rs281.4 vs USD

    The Pakistani rupee demonstrated resilience, marking its third consecutive session of gains against the US dollar with a 0.1 per cent appreciation in the inter-bank market on Friday. 

    According to the State Bank of Pakistan (SBP), the rupee concluded at Rs281.4, reflecting an increase of Re0.27.

    In a noteworthy development, the SBP’s foreign exchange reserves experienced a significant boost of $1.3 billion over a two-week period, attributed to official inflows from international financial institutions facilitated by the government of Pakistan. 

    The upward trajectory in the SBP’s foreign exchange reserves was evident in the final weeks of December. Inflows totaling $852 million were reported for the week ending December 22, 2023, followed by an additional $464 million by December 29, 2023. 

    Cumulatively, an impressive $1.316 billion contributed to the SBP’s reserves during this fortnight.

  • Pakistani rupee strengthens by 5 paisa, closes at PKR 281.67 against US dollar

    Pakistani rupee strengthens by 5 paisa, closes at PKR 281.67 against US dollar

    The Pakistani rupee (PKR) demonstrated a 5.08 paisa appreciation against the US dollar during Thursday’s interbank session, concluding at PKR 281.67 per USD, compared to the previous closing at PKR 281.72 per US dollar (USD).

    Throughout the day, the currency reached an intraday high (bid) of Rs281.84 and a low (ask) of Ra281.8. In the open market, Exchange Companies quoted the dollar at Rs281 for buying and Rs283 for selling.

    It’s noteworthy that the local unit concluded its 13-day historic winning streak against the greenback in the first trading session of 2024, experiencing a modest depreciation of 3.37 paisa against the US dollar.

    In contrast to major currencies, PKR gained 56.27 paisa against the Euro, closing at Rs308.07 compared to the previous value of Rs308.63. 

    The British Pound saw an increase of Rs1.25, concluding at Rs357.49 compared to Rs356.24 from the previous day.

    The Swiss franc recorded gains of 75.99 paisa, closing at Ra332.01 compared to Rs331.25 from the previous session. 

    Against the Japanese Yen, PKR gained 1.18 paisa, closing at 1.964 versus 1.9758 a day ago. The Chinese Yuan lost 4.96 paisa, closing at 39.38 against 39.43 from the previous session. 

    The Saudi Riyal closed at 75.1 with a loss of 1.75 paisa from its values of 75.12 a day ago, and the U.A.E Dirham decreased by 1.28 paisa from 76.69 to 76.71.

    In the current financial year, PKR has appreciated against the Dollar by 4.32 rupees or 1.53 per cent, while the current calendar year has seen PKR appreciate by 18.73 paisa or 0.07 per cent. 

    In the money market, the benchmark 6 Month Karachi Interbank Bid and Offer rates decreased by 6 bps to 21.16 and 21.41 per cent.

  • Interbank closing: Pakistani rupee resumes winning streak against US dollar

    Interbank closing: Pakistani rupee resumes winning streak against US dollar

    The Pakistani rupee exhibited resilience against the US dollar in the inter-bank market, marking a 0.06 per cent gain on Wednesday, reaching a settlement of Rs281.72, reflecting an increase of Re0.17, as reported by the State Bank of Pakistan (SBP). 

    This positive momentum follows a slight dip on Tuesday, when the rupee settled at Rs281.89 against the US dollar.

    Meanwhile, on the international front, the US dollar experienced a broad ascent on Wednesday, hovering near a two-week high against major peers. 

    This surge is attributed to various factors, including elevated US Treasury yields and a cautious shift in risk sentiment that impacted Wall Street.

    In another significant development, the Federal Board of Revenue (FBR) is poised to implement stringent measures targeting non-filers during the current month. 

    The initial phase involves the blocking of mobile SIM cards and mobile phones for non-filers, with the issuance of the Income Tax General Order expected by January 15. 

    The FBR is also formulating a strategy to disconnect electricity and gas connections for non-filers, acknowledging a current lack of comprehensive data on the electricity connections of non-filers.