Tag: policy rate

  • 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.

  • 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.

  • 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.

  • State Bank of Pakistan maintains policy rate at 22% despite inflation concerns 

    State Bank of Pakistan maintains policy rate at 22% despite inflation concerns 

    The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) convened today to deliberate on the prevailing economic conditions and has resolved to maintain the policy rate at 22 per cent for the fourth consecutive meeting. 

    This decision aligns with market expectations, as a majority of market participants were in agreement regarding the rate remaining unchanged. 

    The Monetary Policy Statement issued by the central bank indicates that the decision takes into consideration the impact of the recent increase in gas prices on November’s inflation, which exceeded the MPC’s earlier projections.  

    The Committee acknowledged the potential implications of this on the inflation outlook while also noting offsetting factors such as the recent decline in international oil prices and the improved availability of agricultural produce. 

    Additionally, the Committee conducted an assessment indicating that the real interest rate remains positive over a 12-month forward-looking horizon and anticipates a downward trajectory for inflation. 

    Key developments since the October meeting were considered by the MPC. Firstly, the successful completion of the staff-level agreement for the first review under the IMF SBA programme, which is expected to unlock financial inflows and enhance the SBP’s foreign exchange serves, 

    Secondly, the quarterly GDP growth for Q1–FY24 met the MPC’s expectations for a moderate economic recovery. 

    Lastly, consumer and business confidence surveys reflected positive sentiment improvements. Lastly, core inflation persists at elevated levels, showing a gradual reduction. 

    Considering these developments, the Committee determined that the existing monetary policy stance is conducive to achieving the inflation target of 5-7 per cent by the end of FY25. 

    The Committee emphasised that this assessment is contingent on the sustained implementation of targeted fiscal consolidation and the timely realisation of planned external inflows. 

  • State Bank of Pakistan to announce monetary policy decision on December 12

    State Bank of Pakistan to announce monetary policy decision on December 12

    The State Bank of Pakistan (SBP) is set to unveil its monetary policy on Tuesday, December 12. A statement released by the central bank on Friday informed that the Monetary Policy Committee (MPC) of SBP will convene in Karachi on December 12 to deliberate on monetary policy. 

    Subsequently, the central bank will issue the official monetary policy statement. In its preceding meeting on October 30, the MPC judiciously opted to uphold the policy rate at 22%, citing global market volatility. 

    The committee underscored the imperative of persisting with a stringent monetary policy stance to mitigate inflation.

    PKR ends another week in green

    The Pakistani currency is experiencing an upward trend against the US dollar for the past several sessions, concluding the week in positive territory on Friday. 

    According to the SBP, the Pakistani rupee gained 0.09 per cent, closing at Rs283.87 against the US dollar.

  • Pakistani rupee experiences 11th consecutive session of decline against US dollar

    Pakistani rupee experiences 11th consecutive session of decline against US dollar

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    The Pakistani rupee faced its eleventh consecutive session of losses against the US dollar, depreciating by 0.34 per cent in the inter-bank market on Monday.

    According to the State Bank of Pakistan (SBP), the rupee settled at 285.29, marking a decline of Re0.98.

    In the preceding week, the rupee had also suffered losses against the US dollar, closing 1.33 per cent lower at 284.31 in the inter-bank market, equivalent to a decrease of Rs3.74. This marked the third consecutive week of declines for the local currency.

    Prior to this recent trend, the Pakistani rupee had maintained a positive trajectory for 28 consecutive sessions, one of the longest appreciation runs, gaining a cumulative 10.93 per cent since reaching a record low of 307.1 in the inter-bank market on September 5.

    This surge was largely attributed to efforts to combat smuggling and increased controls on exchange companies.

    However, the situation has since shifted in favour of the US dollar, with global currencies remaining stable on Monday but appearing poised to continue their recent uptrend. This comes as the US dollar retreated following a moderation in the Federal Reserve’s hawkish stance.

    Internationally, major global currencies showed stability early on Monday, with the US dollar index flat at 105.11 and the euro at $1.0726.

    The dollar index experienced its most significant decline since mid-July, falling over 1 per cent last week and reaching a six-week low.

    Weakness in US job data, softer global manufacturing figures, and declining longer-term Treasury yields also contributed to the dollar’s weakened position.

  • State Bank of Pakistan maintains 22% policy rate in line with market consensus

    State Bank of Pakistan maintains 22% policy rate in line with market consensus

    Following the consensus in the broader market, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) announced on Monday that it would maintain the key policy rate at 22 per cent, as stated in their press release.

    The Committee recognised that headline inflation, as expected, increased in September 2023 but anticipates a decline in October, followed by a sustained decrease, particularly in the latter half of the fiscal year.

    While the MPC acknowledged potential risks to the FY24 inflation outlook and the current account due to recent global oil price volatility and forthcoming gas tariff increases in November 2023, they also identified mitigating factors.

    These factors include targeted fiscal consolidation in the first quarter, enhanced availability of crucial commodities in the market, and the alignment of interbank and open market exchange rates.

    The MPC emphasised that the real policy rate, looking forward over a 12-month horizon, remains significantly positive.

    This is deemed appropriate to achieve the medium-term inflation target of 5-7 per cent by the end of FY25, contingent upon the sustained fiscal consolidation and timely realisation of planned external inflows, as articulated in the MPC statement.