Tag: US dollar

  • PKR to USD: Pakistani rupee drops to Rs288.52 against US dollar

    PKR to USD: Pakistani rupee drops to Rs288.52 against US dollar

    The Pakistani rupee continued its downward trend for the eighth consecutive session, experiencing a depreciation of 0.21 per cent against the US dollar on Tuesday. According to the State Bank of Pakistan (SBP), the rupee closed at Rs288.52, marking a decrease of Re0.6.

    Over the past eight trading sessions, the currency has lost nearly 4.2 per cent or Rs12.02 against the US dollar. On the previous day, Monday, the rupee also suffered losses against the US dollar for the seventh successive session, depreciating 0.39 per cent and settling at 287.92 in the inter-bank market.

    In a significant development, the National Electric Power Regulatory Authority (NEPRA) approved an increase in the basic electricity tariff by Rs7.5 per unit from July 1, 2023, across the country. The chairman’s remarks indicated that this decision was influenced by the election year, and political choices were being made to alleviate the burden on 68 per cent protected consumers.

    On the international front, the US dollar gained strength ahead of three major central bank meetings scheduled for the week. Meanwhile, the euro faced challenges, hitting a two-week low on Tuesday due to a deteriorating economic situation in the eurozone, which complicated the bloc’s interest rate outlook despite the European Central Bank’s (ECB) hawkish stance.

  • US dollar surges against Pakistani rupee for eighth consecutive day in interbank market

    US dollar surges against Pakistani rupee for eighth consecutive day in interbank market

    The US dollar has been steadily appreciating against the Pakistani rupee for eight consecutive days, showing a continued upward trend in its value. On Tuesday, the currency further strengthened in the interbank market.

    At the start of the daily trading session in the interbank market, the American currency gained Rs1.8, reaching a value of Rs289 against the local currency. Over the course of the last eight days, the US dollar has gained Rs12.50 against the rupee in the interbank market.

    Interestingly, on Monday, despite receiving financial support from the International Monetary Fund (IMF) and other friendly countries, the Pakistani rupee depreciated even further against the US dollar.

    According to the State Bank of Pakistan (SBP), the dollar’s rate increased by Rs1.1 on Monday, with a closing rate of Rs287.92. In comparison, it had closed at Rs286.81 on Friday, showing a 0.39 per cent decline in the value of the rupee against the US dollar.

  • Pakistani rupee gains Rs15 versus US dollar during intraday trade

    Pakistani rupee gains Rs15 versus US dollar during intraday trade

    In the aftermath of securing last-minute funding from the International Monetary Fund (IMF), the Pakistani rupee exhibited a substantial gain of Rs15 against the US dollar in the interbank market on Tuesday.

    As reported by the Forex Association of Pakistan, the local currency’s exchange rate appreciated to Rs271 around 10 am. It is worth noting that the rupee had closed at 285.99 against the dollar on June 27, with trading activities suspended due to the Eid holidays last week and a bank holiday on Monday.

    This positive development follows a previous record-high exchange rate of Rs290.93 reached on May 11. Since then, the dollar has experienced a considerable decline of more than Rs23.

    The anticipated 3 per cent appreciation of the rupee has been realised, but the sustainability of these gains will be verified in the days ahead. The government has indicated that the partial funds from the IMF deal will be disbursed by mid-July.

    Additionally, the government has expressed confidence in securing approximately $4 to $5 billion from Saudi Arabia, the United Arab Emirates, and the Islamic Development Bank. These additional funds would contribute to resolving the dollar liquidity issues.

    The strength and stability of the rupee are likely to be maintained if these payments materialise. However, any delays could potentially increase pressure on the currency.

    According to the government’s projections, Pakistan’s reserves are expected to increase to $14 billion by August. Should this estimation hold true, it is anticipated that the rupee will stabilise around the range of 270 to 280, as suggested by experts.

  • Pakistani rupee records slight increase against US dollar, settles at Rs285.99

    Pakistani rupee records slight increase against US dollar, settles at Rs285.99

    The State Bank of Pakistan reported that the Pakistani Rupee (PKR) maintained an upward trajectory against the US dollar in the interbank foreign exchange market on Tuesday.

    The PKR experienced a gain of Rs0.072 against the greenback, resulting in a closing rate of Rs285.99. This marks an improvement from the previous day’s closing rate of Rs286.71.

    Experts attribute the rise in the dollar’s value to the government’s successful fulfillment of all conditions set by the International Monetary Fund (IMF).

    Prime Minister Shehbaz Sharif recently engaged in his fourth communication with the IMF Managing Director, Kristalina Georgieva, within a span of six days.

    It is worth noting that Pakistan’s ninth review by the IMF under the 2019 Extended Fund Facility, which aims to secure the release of $1.2 billion in funds, is still pending. With only three days remaining until the programme’s expiry on June 30, there is a pressing need to conclude the review process promptly.

  • Pakistani rupee maintains winning streak against dollar for third day to close at Rs286.73

    Pakistani rupee maintains winning streak against dollar for third day to close at Rs286.73

    The Pakistani rupee continued its upward trend against the US dollar for the third consecutive session in the inter-bank market on Thursday, appreciating by 0.09 per cent. According to the State Bank of Pakistan (SBP), the currency settled at Rs286.73 at the close, showing an improvement of Rs0.25 compared to the previous day’s rate of Rs286.98.

    In a significant development, Finance and Revenue Minister Ishaq Dar met with US Ambassador to Pakistan Donald Blome on Wednesday to discuss the economic ties between Pakistan and the United States, as well as the International Monetary Fund (IMF) loan program.

    This meeting took place following the IMF’s criticism of Islamabad’s budget proposals for the fiscal year 2023-24. Esther Perez Ruiz, the IMF’s Resident Representative for Pakistan, expressed dissatisfaction with the budget proposals, describing them as a missed opportunity to broaden the tax base. She also criticised the new amnesty scheme, stating that it sets a damaging precedent.

    Separately, Prime Minister Shehbaz Sharif stated on Wednesday that the immediate goal, with the assistance of the Special Investment Facilitation Council (SIFC), is to increase Foreign Direct Investment (FDI) in the country to $5 billion.

    On the international front, the US dollar remained close to a one-month low against a basket of currencies on Thursday. This followed Federal Reserve Chair Jerome Powell’s testimony, where he maintained his usual stance and offered little room for surprise.

    Powell’s comments to lawmakers on Capitol Hill aligned with the central bank’s previous policy meeting, indicating that further rate increases are likely if the economy continues its current trajectory. As a result, the greenback depreciated by nearly 0.5 per cent against six major peers in the previous session.

    Meanwhile, oil prices slightly declined on Thursday. Market expectations of further interest rate hikes were balanced by potentially bullish US oil inventory data, which indicated a decrease in stocks.

  • Google’s technical glitch causes panic with incorrect US dollar rate of Rs186 instead of Rs286

    Google’s technical glitch causes panic with incorrect US dollar rate of Rs186 instead of Rs286

    Late Tuesday night, a technical malfunction on Google Search caused a momentary panic among investors and observers as the value of the US dollar plunged in comparison to the Pakistani rupee.

    The unexpected drop to Rs186.73 bewildered many, especially considering that the local currency hadn’t experienced a significant rebound recently.

    It was later discovered that the decline in currency exchange rates was a result of a technical problem with the search engine on the website, leading to a temporary plummet in the rates.

    This incident is not the first of its kind and has occurred multiple times in the past, leaving users puzzled by massive declines in dollar rates.

    The glitch and its impact

    On Tuesday, June 6, the interbank market closed with the Pakistani rupee at Rs286.56 against the US dollar, while it remained above Rs300 in the open market. However, due to the technical glitch on Google Search, the rates displayed on the platform inaccurately dropped to Rs186.73.

    The sudden decline surprised and concerned individuals who were monitoring the exchange rates, as it deviated significantly from the prevailing values. Fortunately, the issue was promptly identified and rectified, restoring the rates to Rs286.72.

    Recurring glitches on Google Search

    This incident marks yet another occurrence of a glitch affecting the world’s largest search engine and impacting currency exchange rates. In July of the previous year, the rates displayed on Google Search had crashed to Rs207.10, a stark contrast to the rates issued by the State Bank of Pakistan.

    According to the central bank, the rupee had closed at 236.02 against the US dollar in the interbank market. The repetition of such glitches raises concerns about the accuracy and reliability of the information provided by Google Search in matters of global financial significance.

    User Reactions and Social Media Response: The recent glitch on Google Search didn’t go unnoticed by users, with several individuals taking to Twitter to highlight the issue. One user tweeted, “Last night, the dollar crashed on Google,” emphasising the impact the technical malfunction had on the perceived value of the US dollar.

    Such reactions on social media platforms highlight the widespread reliance on search engines for real-time financial data and the potential consequences of inaccuracies caused by technical glitches.

    While the glitch was rectified, it highlights the recurring nature of such incidents on the world’s largest search engine, casting doubts on the accuracy of the financial information provided.

    As reliance on search engines for real-time data increases, it becomes imperative for platforms like Google to ensure the reliability and integrity of the information they display to prevent unwarranted panic or misinformation in the financial markets.

  • Pakistani rupee gains ground as State Bank eases cross-border transaction rules

    Pakistani rupee gains ground as State Bank eases cross-border transaction rules

    In a significant turn of events, the Pakistani rupee experienced a notable appreciation against the US dollar in the open-market on Thursday.

    The value of the US dollar dropped to the range of Rs295-300, compared to the previous day’s rate of Rs314. This shift can be attributed to recent changes implemented by the State Bank of Pakistan (SBP) to facilitate cross-border transactions.

    Currency dealers consulted by Business Recorder acknowledged that the supply of US dollars remains limited in the market, as customers are not actively selling their currency. This scarcity could be a contributing factor to the rupee’s recent surge in value.

    According to experts, the recent development is a direct result of the SBP’s decision to allow credit card payments through banks. The SBP, on Wednesday, permitted banks to purchase US dollars from the interbank market for settling card-based cross-border transactions with International Payment Schemes (IPSs).

    Previously, the SBP guidelines only permitted authorized dealers to purchase US dollars from exchange companies for settling card-based cross-border transactions with IPSs such as Visa and MasterCard.

    However, in response to stakeholder feedback, the SBP opted to extend this privilege to banks, allowing them to source dollars from the interbank market for such transactions.

  • Pakistani rupee maintains upward trend for fourth consecutive day, closes at Rs285.15 against dollar

    Pakistani rupee maintains upward trend for fourth consecutive day, closes at Rs285.15 against dollar

    According to the State Bank of Pakistan (SBP), the Pakistani currency has maintained its upward trend against the US dollar for the fourth consecutive working day in the interbank market.

    The local unit (PKR) has recovered Rs0.59 against the USD, closing at Rs285.15, while the US dollar closed at Rs285.74 on the previous day.

    In contrast, the open market has seen the dollar being sold at over Rs300. Last week, the rupee reached a record low of Rs298.93 against the US dollar.

     Experts attribute the fluctuation in the dollar rate to the deadlock over the IMF deal and ongoing political unrest in the country.

    Due to the delay in the revival of the $6.5 billion International Monetary Fund (IMF) bailout programme, Pakistan is now seeking additional funding from friendly nations.

    The staff-level agreement between the International Monetary Fund and Pakistan, initially scheduled for February 9, has been postponed.

  • Pakistani rupee sinks to record low of Rs308 against US dollar in open market

    Pakistani rupee sinks to record low of Rs308 against US dollar in open market

    On Tuesday, the Pakistani currency experienced a significant decline, reaching a new record low of Rs308 against the US dollar in the open market. This marked a 1 per cent decrease, or Rs3, from the previous day’s closing rate, as reported by the Exchange Companies Association of Pakistan.

    Consequently, the disparity between the exchange rates in the open market and the inter-bank market widened considerably, reaching a historic high of Rs21 to a dollar. Just a couple of months ago, this difference was in the range of Rs1-3.

    In inter-bank transactions, the central bank stated that the rupee continued its downward trend for the fifth consecutive working day, dropping by 0.21 per cent, or Rs0.59, to a 12-day low at Rs287.15 against the US dollar.

    There has been speculation in the market that the rupee is facing mounting pressure due to the expanding gap between the demand and supply of the US dollar in the currency market.

    In the meantime, Pakistan’s foreign exchange reserves have been consistently depleting and have now reached a critically low level of $4.3 billion. This is concerning because the country requires a comparatively large amount of foreign currency to cover import expenses and repay foreign debt.

    By the end of June 2023, Pakistan has to repay $3.7 billion in foreign debt. Additionally, it needs another $3.7 billion each month to ensure smooth importation of essential goods.

    Currency dealers in the open market have revealed that commercial banks are purchasing dollars in the informal market (kerb market) to settle international payments made through their clients’ credit cards. Furthermore, individuals are acquiring Saudi riyals and US dollars to cover expenses during the Hajj and Umrah pilgrimages.

    Experts strongly emphasize that the government must persuade the International Monetary Fund (IMF) to resume its $6.7 billion loan programme. Additionally, they urge friendly countries to provide fresh financing, which will help mitigate the risk of defaulting on external debt obligations.

    The resumption of the IMF programme will not only assist Pakistan in averting an imminent default but will also enable the country to attract financing from other global lenders and friendly nations. This new financing will bolster the foreign exchange reserves and aid in the reopening of the partially closed economy.

  • Pakistan rupee recovers by one paisa against US dollar

    Pakistan rupee recovers by one paisa against US dollar

    According to the State Bank of Pakistan (SBP), the Pakistani rupee (PKR) strengthened by Rs0.01 against the US dollar in the interbank market on Tuesday.

    The local currency managed to recover and closed at Rs284.96.

    In contrast, the dollar is being traded at Rs290 in the open market.

    It’s worth noting that the rupee had reached a record low of Rs298.93 against the US dollar last week.

    Market speculation suggests that the rupee’s gains were further supported by reduced demand for foreign currency, resulting from a significant import payment between May 9 and 11, coinciding with the period of heightened political drama in the country.

    Reports indicate that the substantial dollar payment for imports had been arranged by the oil refineries. Oil imports constitute approximately one-fourth of the total import bill for a month.

    Earlier, the rupee experienced a sharp decline of 4.71 per cent or Rs14.09 in just two days (May 10-11), hitting a record low of Rs298.93/$ due to worsening political turmoil and deteriorating law and order following the arrest of former Prime Minister Imran Khan. However, the rupee managed to recover some of its losses after Khan’s release on May 12, as ordered by the court.