Tag: USD to PKR

  • 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.

  • Pakistani rupee strengthens by Rs2.82 against dollar, closes at Rs270.51

    Pakistani rupee strengthens by Rs2.82 against dollar, closes at Rs270.51

    The Pakistani rupee (PKR) experienced an upward trend against the US dollar in the inter-bank market on Thursday, appreciating by 1.04 per cent due to expectations surrounding the revival of the International Monetary Fund (IMF) program.

    According to the State Bank of Pakistan (SBP), the currency closed at Rs270.51 against the US dollar, reflecting an increase of Rs2.82. Despite this improvement, the currency has depreciated by 23.7 per cent during the current fiscal year against the US dollar.

    On Wednesday, the PKR also saw significant gains against the US dollar, closing at Rs273.33, reflecting an appreciation of Rs2.95 or 1.08 per cent.

    In a key development, Finance Minister Ishaq Dar said on Thursday negotiations between Pakistan and the IMF are “on track” and “we will announce good news soon”.

    Speaking to the media, Dar said talks between the two sides had entered the final round, progress has been “satisfactory” and he hopes discussions will conclude today.

    The dollar index, which measures the US currency against six rivals, was 0.029 per cent higher on Thursday at 103.460, having dropped nearly 0.3 per cent in the previous session.

    Gold prices, rose for a fourth straight session as the dollar faltered, although bullion’s outlook remained cloudy amid the comments made by Fed officials.

    Meanwhile, oil prices, a key indicator of currency parity, were broadly steady on Thursday as the prospect of higher fuel demand in China as it reopens post-COVID curbs were offset by fears that US crude stocks hitting their highest for months may signal weakening demand in the world’s number one economy.

  • Pakistani rupee gains Rs1.28 against US dollar, closes at Rs275.30

    Pakistani rupee gains Rs1.28 against US dollar, closes at Rs275.30

    On Monday, the Pakistani rupee exhibited a slight improvement in its exchange rate against the US dollar, closing with a gain of 0.46 per cent in the inter-bank market. The local currency settled at Rs275.30 per US dollar, an improvement of Rs1.28, according to the State Bank of Pakistan (SBP).

    During the current fiscal year, the rupee has depreciated by 25.47 per cent against the US dollar. This appreciation follows a recent decline, with the rupee hitting an all-time low against the US dollar on Friday, closing at Rs276.58, a decrease of Rs5.22 or 1.89 per cent.

    Last week, the Pakistani rupee experienced a cumulative decline of 5.05 per cent. This was due to a number of factors, including low foreign exchange reserves, which decreased by an additional $592 million to reach a mere $3.09 billion.

    Additionally, comments made by Prime Minister Shehbaz Sharif regarding the challenging loan negotiation process with the International Monetary Fund (IMF) further added to investor concerns.

    Discussions with the IMF are ongoing, and reports indicate that the organization is requiring reforms and preconditions in several critical areas, including taxation, the power sector, and energy pricing. Analysts predict that the rupee will continue to face pressure until the IMF program is fully clarified.

  • Kia increases car prices by up to Rs1.3 million ‘due to significant devaluation of Pakistani rupee’

    Kia increases car prices by up to Rs1.3 million ‘due to significant devaluation of Pakistani rupee’

    As the value of the Pakistani rupee (PKR) against the US dollar falls to an all-time low, Kia Lucky Motors Corporation (KLMC) has announced a significant hike in their car prices in Pakistan.

    Details indicate that, depending on the model, the manufacturer has increased the price of the Kia Picanto, Kia Sportage, Kia Stonic, Kia Sorento, and Kia Carnival in Pakistan by up to Rs1.3 million.

    “Due to the significant and unprecedented devaluation of PKR to USD during the last couple of days, it has become inevitable for LMC to increase the current ex-factory prices of all its vehicles,” the company announced in its notification to dealers.

    The new rates will go into effect on January 31, 2023.

    “While the impact of the devaluation of PKR to USD has been immense, LMC, being a customer-centric organization, has decided not to pass the full impact thereof to its valued customers,” it said, adding that only a partial impact is being passed on to the customer and the rest has been absorbed by LMC.

    It is important to note that on January 30, 2023, the interbank market closed with the Pakistan rupee at an all-time record low of Rs269.63 versus the US dollar.

    The price of the Kia Picanto in Pakistan has been increased by a massive Rs100,000 for both variants, bringing the new price of the M/T variant to Rs3,200,000 and the A/T variant to Rs3,400,000, compared to the old prices of Rs3,100,000 and Rs3,400,000, respectively.

    Here are the new prices for all Kia cars:

  • Exchange companies remove cap on dollar-rupee exchange rate to abolish grey market

    Exchange companies remove cap on dollar-rupee exchange rate to abolish grey market

    The exchange companies have decided to stop artificially keeping Pakistani rupee (PKR) overvalued against US dollar in the open market and let the rupee-dollar exchange rate depreciate to its actual value.

    Pakistani rupee may steadily lose value until it reaches the level of the grey market in a few days, according to reports.

    The black market price of local currency is currently between Rs250 and Rs260 per US dollar, although traders had artificially kept the rate at Rs238 till Tuesday.

    “The association has decided to remove cap on rupee-dollar exchange rate,” Exchange Companies Association of Pakistan (ECAP) President Malik Bostan said in audio and video messages after chairing a zoom meeting on Tuesday.

    “The move would help eliminate black currency markets, increase flow of foreign currencies to the dealers and available to public (for international travelling, education and hospital fees and etc.”

    He said that in the interest of the country, traders voluntarily opted to restrict the exchange rate. But the choice led to an underground market for cash that seemed to be more detrimental to the country.

    “People were buying dollars from open market (at Rs238) and selling in black market (at Rs250-260), making it a business to mint profit,” he said, adding no one was coming to the dealers’ counters to sell foreign currency which resulted into drying up supplies on the other hand.

    According to ECAP General Secretary Zafar Paracha, the decision to abolish the exchange rate ceiling will aid in the eradication of the black market and restore the inflow of foreign money from the illicit system into the legitimate one.

    Additionally, the government has been urged by the International Monetary Fund (IMF) to relinquish control over the rupee-dollar exchange rate in the interbank market and allow market forces to decide the rate while taking the demand and supply of US dollars into account.

    Accordingly, it is anticipated that the local currency would also reach Rs250-260 in the interbank market as compared to the US dollar.

    Pakistan technically has three currency markets, including the interbank, open, and black markets. As a result, each of the three markets is providing a different rate.

    The black currency market was formed after Finance Minister Ishaq Dar tried to keep the currency artificially overvalued at Rs180–200 to the US dollar after returning to the ministry in late September 2022.

    The currency, therefore, appreciated to Rs218 in the early days of October from its all-time low of Rs240 the first time in late July 2022 and the last time in September 2022.

    Dar opened an investigation against the commercial banks, blaming them for market forces that had artificially devalued the currency to Rs240 per dollar.

    Governor State Bank of Pakistan (SBP) Jameel Ahmed said that the central bank has completed the investigation against 13 commercial banks allegedly involved in rupee-dollar parity manipulation.

    “The central bank is all set to take action against them in days (instead weeks and months). The action could be fiscal or regulatory one,” he added.

  • US dollar may drop to Rs210 in November

    US dollar may drop to Rs210 in November

    Considering expected inflows from the Asian Development Bank (ADB) and Pakistan’s deletion from the Financial Action Task Force’s (FATF) grey list, the currency is projected to strengthen versus the US dollar this week.

    According to The News, this week in the interbank market, the local currency dipped by 0.89 per cent in value against the dollar. However, thanks to encouraging news from the ADB and FATF, the local currency increased to Rs220.84 during the last trading session.

    According to the analysts, assistance from multilateral creditors during the floods would help boost foreign exchange reserves and strengthen the local currency.

    The State Bank of Pakistan’s foreign exchange holdings as of October 14 totaled $7.59 billion, or nearly one month’s worth of imports.

    According to Tresmark, a terminal that tracks real-time pricing of financial markets, the rupee is predicted to trade at 216 to the dollar in the coming 10 days and 210 to the dollar in the coming 30 days.

    “This is because of ADB-related inflows of $1.5 billion in the coming week and $2 billion of inflows in the first week of November. Of course, this would not have been possible without the finance minister’s undervalued rupee mantra,” Tresmark said in a client note.

    Six months from now, though, would be the rupee’s true test, it was said.

    Analysts predict that the US interest rate will surpass 5 per cent (a level last reached in 2008) and that the dollar will continue to rise.

    Markets expect the Indian Rupee to be at 95 per dollar, the Bangladesh Taka to be at 115 per dollar, and the Yuan to continue declining, despite the fact that major currencies all have a bearish tendency. Although the dollar’s strength is an issue, the global recession continues to be of much greater concern.

    A 15-20 per cent decline in exports and a 5 per cent decline in remittances are anticipated by economists, even if the current account deficit (CAD) for September was practically at breakeven.

    They continued, saying that maintaining the economic winter would need sustained import compression and additional economic deceleration.

    Due to lower letters of credit being settled during the previous week, the rupee somewhat declined. According to market estimates, only around 50 per cent, or roughly $600 million, has yet to be processed.

  • Pakistani rupee crashes against US dollar for 11th day in a row

    Pakistani rupee crashes against US dollar for 11th day in a row

    For the eleventh session in a row, Pakistan’s rupee has lost value versus the US dollar, falling 0.41 per cent on Friday in the interbank market as the dollar gained momentum throughout the world and investors’ concerns about the increasing trade imbalance intensified.

    The rupee dropped by Rs0.96, according to the State Bank of Pakistan (SBP), and ended the day at Rs236.84. The rupee has lost Rs18.24, or 7.7 per cent, overall over the last 11 trading sessions against the US dollar.

    In the interbank market on Thursday, the Pakistani rupee declined against the US dollar for the tenth straight session as investors expected funding from allies and foreign creditors. It ended the day down 0.66 per cent at Rs235.88.

    The local currency increased in value last month as a result of Pakistan fulfilling all previous IMF requirements, which allowed the programme to resume. This development enabled Pakistan to receive $1.17 billion under the Extended Fund Facility (EFF).

    The local currency has recently, however, been under intense pressure once more and is currently hovering close to its all-time low as funding anticipated from allies has not yet materialised.

    Additionally, the State Bank of Pakistan’s (SBP) foreign exchange reserves decreased by $176 million, reaching $8.62 billion as of September 9, 2022, according to information made public on Thursday.

    According to the SBP, the nation possessed $14.32 billion in liquid foreign reserves. Commercial banks held $5.7 billion in net foreign reserves.

    Globally, the dollar remained close to recent highs on Friday as Treasury yields rose and the demand for the currency persisted on expectations that the Federal Reserve would need to raise rates further to control inflation.

    The US dollar index, which compares the value of the dollar to a basket of other currencies, increased to Rs109.69, which is not far from its two-decade high of Rs110.79.

    In the meantime, oil prices—a crucial factor in determining currency parity—were largely stable on Friday, but they were headed for a weekly decrease due to worries about sudden interest rate hikes that would likely slow global economic growth and fuel demand.

  • Pakistani rupee loses Rs2.01 against dollar to close at Rs216.66

    Pakistani rupee loses Rs2.01 against dollar to close at Rs216.66

    On Monday, the Pakistani rupee (PKR) remained under pressure to start the week, falling Rs2.01, or 0.93 per cent, versus the US dollar in the interbank market.

    The local currency dropped from Friday’s closing rate of Rs214.65 to Monday’s closing rate of Rs216.66 per dollar, according to the State Bank of Pakistan.

    The dollar fluctuated between Rs213-214 during the previous week. It ended at Rs214.65 on Friday after ending at Rs213.98 on Monday. Last week, the rupee lost 0.31 per cent of its value against the dollar.

    The KSE 100-index of the Pakistan Stock Exchange (PSX), on the other hand, experienced a bearish trend on Monday, shedding 443.99 points, or 1.03 per cent, and finishing at 42,826.66 points as opposed to 43,270.65 points on the last working day.

    When compared to the previous trading day, when 306,208,580 shares were traded, a total of 194,667,559 shares were traded on Monday (today). The price of the shares was Rs5.331 billion as opposed to Rs6.393 billion on Friday.

  • PSX surpasses 43,000-mark as IMF tranche inches closer

    PSX surpasses 43,000-mark as IMF tranche inches closer

    As trading began on Monday, the Pakistan Stock Exchange (PSX) resumed its upward trend, rising more than 700 points to cross the 43,000-mark.

    The benchmark KSE-100 index gained 764.25 points, or 1.78 per cent, from its previous finish of 42,857.57.

    PSX – August 15, 2022

    The benchmark KSE-100 index increased by 731.54 points, or 1.71 per cent, by 2:13 pm to reach 43,589.11 points, according to the PSX website.

    Additionally strengthening by Rs1.51, the Pakistani rupee (PKR) ended the day at Rs213.98. Since last week, the local currency has been steadily rising against the US dollar.

    Rupee latest closing -August 15, 2022

    The IMF’s letter of intent and Saudi Arabia’s pledge of more support were among the good developments over the weekend that contributed to the index’s strong start.

    The rupee’s robust rebound and the IMF tranche anticipated at the end of this month can be credited for the upward trend.

  • Rupee gets stronger by Rs2.11 to close at Rs224.04 against US dollar

    Rupee gets stronger by Rs2.11 to close at Rs224.04 against US dollar

    During intraday trade on Friday in the interbank market, the Pakistani rupee (PKR) climbed by Rs2.11 against the US dollar for the sixth session in a row.

    In the course of the day’s trading, the local currency gained Rs2.11 or 0.94 per cent versus the dollar and closed at Rs224.04, down from Thursday’s closing of Rs226.15.

    Dollar to PKR rate – Friday 8 August 2022

    At yesterday’s closing, the rupee marginally increased by Rs2.65 or 1.17 per cent.

    Following the government’s austerity measures, which caused a sharp rise in inflation but also prevented the nation’s economy from collapsing, the rupee has been on the upswing.

    On Wednesday, PKR increased by Rs9.58 against the US dollar, the local currency saw a significant gain. The biggest one-day rise since 1999, it grew by 4 per cent.

    In his speech at an event at the Pakistan Stock Exchange (PSX), Finance Minister Miftah Ismail said that if the nation can manage imports, exports may be increased through a number of strategies.

    After the coalition partners made unpopular decisions, Miftah stated Pakistan was “on the right track” and that the pressure on the rupee will continue to lessen in the days ahead as it strengthened against the dollar.