Tag: usd-pkr rate

  • Interbank market: US dollar reaches all-time high against Pakistani rupee, surpassing Rs300 mark

    Interbank market: US dollar reaches all-time high against Pakistani rupee, surpassing Rs300 mark

    The US dollar reached a new high against the Pakistani rupee, going past Rs300 in the interbank market on Thursday. At 11:15 am, it was at Rs300.4 as per the Forex Association of Pakistan. In the open market, it was valued at Rs314.

    The day before, the dollar ended at Rs299.64 and went up to Rs315 in the open market. The Exchange Companies Association of Pakistan (ECAP) reported buying and selling prices at Rs309 and Rs312.

    As the dollar keeps going up, experts are asking the government to do something about the black market. Saad bin Naseer from Mettis Global said that even though it’s hard to find dollars in the interbank market, they’re easily available in the open market at higher prices.

    Naseer didn’t like that the central bank kept the interest rate at 23 per cent because people prefer investing in foreign currencies over the local economy. Malik Bostan, who leads the Forex Association of Pakistan, warned against hoarding dollars, thinking their price will keep rising.

    Bostan noticed regular people buying dollars thinking they’ll become more valuable due to the increase in the interbank market. He also mentioned that removing import restrictions from the IMF made the rupee weaker.

    Zafar Paracha, from the Exchange Companies Association of Pakistan, blamed the rupee’s decline on more unnecessary imports. He agreed with Bostan and urged people not to buy more dollars during this uncertain time for the rupee.

  • Pakistani rupee declines to new historic low of Rs299 per US dollar

    Pakistani rupee declines to new historic low of Rs299 per US dollar

    The Pakistani rupee continued its downward trend on Tuesday, closing at an all-time low of Rs299.0070 against the US dollar. This represents a decline of 0.63 per cent or Rs1.873.

    On Monday, the rupee continued to struggle against the US dollar, closing at Rs297.13. This drop in value is due to several reasons. One is the country’s current account deficit, which has widened because it’s now easier to open letters of credit. This change has affected the availability of foreign exchange, putting pressure on the rupee’s value in the local market.

    Another factor is the lack of foreign exchange coming into the country. This shortage has also contributed to the rupee’s decline.

    Experts say that the increase in import payments is tied to the International Monetary Fund’s (IMF) demand to remove import restrictions. This has led to a higher demand for the US dollar.

    Political uncertainty is also playing a role in the rupee’s decline. There are concerns that the general elections might be delayed. This delay could also mean a hold-up in fulfilling promises made to the IMF and other international lenders. With a caretaker government in place, questions arise about who will invest in and lend money to the country.

    To add to these challenges, there’s a need to bridge the gap between the rates in the inter-bank and open markets, which has been getting wider lately.

  • Pakistan rupee appreciates Rs9.58 against US dollar, closes at Rs228.8

    Pakistan rupee appreciates Rs9.58 against US dollar, closes at Rs228.8

    The US dollar dropped Rs9.58 during Wednesday’s session, closing at Rs228.80 versus the rupee, down from Rs238.38 at Tuesday’s interbank close.

    On the other hand, the greenback depreciated Rs14.50 in the open market, closing at Rs226, according to the Forex Association of Pakistan.

    Following comments from an IMF official that Pakistan has met its final requirement by raising the tax on fuel prices on July 31, the Pakistan Stock Exchange (PSX) on Wednesday also experienced a bullish trend as the KSE-100 index rose 1016 points.

    The KSE-100 index increased by 1016 points to trade at 41,208. Experts claim that the rupee’s progressive strengthening was also responsible for the market’s increased confidence.

    Pakistan had raised the petroleum development levy (PDL), according to Esther Perez Ruiz, the IMF’s resident representative in Islamabad, completing the final previous action needed for the Fund’s combined seventh and eighth assessment.

    “With the increase in PDL on July 31, the last prior action for the combined seventh and eighth review has been met. The [Executive Board] meeting is tentatively planned for late August once adequate financing assurances are confirmed,” she said in a statement.

    Read more: Intraday trade: US dollar sheds Rs7.38 against Pakistani rupee

    The $6 billion agreement, known as the Extended Fund Facility (EFF), was signed by Pakistan and the IMF in 2019.

    However, since the IMF voiced concerns about Pakistan’s adherence to the agreement early this year, the disbursement of the combined seventh and eighth tranche has been put on hold.