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Pakistan Rupees-performance watch

The Pakistani rupee fell by Rs1.52 against the US dollar during interbank trade on Tuesday, extending its losses from the previous week.

The greenback was changing hands in the interbank market at a record Rs298.65 at around 1pm.

In the open market, the dollar was changing hands for Rs306.

The local currency closed at Rs297.13 yesterday, rising by Rs1.35 from the last week’s close of Rs295.78, according to data shared by the Exchange Companies Association of Pakistan (ECAP).
 
KARACHI, Pakistan, Aug 22 (Reuters) - Pakistan's rupee closed at a record low of 299 rupees against the dollar in the interbank market on Tuesday following an easing in import restrictions that has lifted demand for the dollar, central bank data showed.

Pakistan imposed import restrictions from 2022 to stem outflows from its shrinking foreign reserves. The removal of those restrictions beginning in June was a condition of a $3 billion International Monetary Fund loan programme to help the crisis-ridden economy.

Traders said the rupee fell 0.6% to an intraday low of 299 against the dollar. On May 11, it logged a record closing low of 298.93. That was two days after former prime minister Imran Khan was arrested on allegations of graft, plunging the country further into political turmoil.

Pakistan is currently being governed by a caretaker government that is tasked with steering the country through to a national election that is in theory due to take place by November, while grappling with acute political tension as well as historically high inflation and interest rates.
 
The US dollar ascended to a record high against the Pakistani rupee on Thursday, crossing the barrier of Rs300 to the greenback during morning trade in the interbank market.

The greenback was changing hands in the interbank market at Rs300.4 at 11:15am, according to the Forex Association of Pakistan. In the open market, the dollar was trading at Rs314.

Yesterday, the dollar closed at Rs299.64, according to daily data released by the State Bank of Pakistan.
 
The US dollar climbed to new heights against the rupee in the open-market, and hit the 331 level during trading.

The rupee was being quoted at 331 for selling and 328 for buying purposes for customers in the open-market, up by Rs5 from Thursday’s levels of 326 and 323.

The Exchange Companies Association of Pakistan (ECAP), however, quoted rates at Rs326 and Rs323 during trading on Friday.

The currency has come under renewed pressure against the US dollar, after the government lifted import restrictions, a key condition of the International Monetary Fund (IMF), leading to pressure.

Moreover, analysts have said that the IMF condition to maintain a currency gap of around 1.25% between the inter-bank and open-market is driving up rates in the latter.

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Open-market: USD hits 331 against PKR

The US dollar climbed to new heights against the rupee in the open-market, and hit the 331 level during trading. On...
www.brecorder.com
 
The Pakistan rupee continued to depreciate in the interbank market, losing another 1.46 against the dollar, while it gained ground in the open market.

The dollar was trading for Rs307.10 in the interbank market when the market closed, rising by 0.48 per cent from the previous close of Rs305.64, according to State Bank of Pakistan’s data.
 
The Pakistan rupee continued to depreciate in the interbank market, losing another 1.46 against the dollar, while it gained ground in the open market.

The dollar was trading for Rs307.10 in the interbank market when the market closed, rising by 0.48 per cent from the previous close of Rs305.64, according to State Bank of Pakistan’s data.
 
Hassan A said:
The Pakistan rupee continued to depreciate in the interbank market, losing another 1.46 against the dollar, while it gained ground in the open market.

The dollar was trading for Rs307.10 in the interbank market when the market closed, rising by 0.48 per cent from the previous close of Rs305.64, according to State Bank of Pakistan’s data.
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The clowns don't understand that the uncertainty they created to overthrow IK has destroyed the Rp and Pk economy.
 
Bewal Express said:
The clowns don't understand that the uncertainty they created to overthrow IK has destroyed the Rp and Pk economy.
Click to expand...
Think the root cause is more the "Dar Dollar Peg". Increased imports cheap and decreased exports

This went on for years messing up economy in every possible way.
 
an article from 2000, 23 years ago.

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Breaking News, Analysis, Politics, Blogs, News Photos, Video, Tech Reviews - TIME.com

Musharraf's Muddles Pakistan's military leader promised change, but the battle for reform has been tougher than he
content.time.com content.time.com

>>>>In an unprecedented show of disrespect for the military, shopkeepers slammed down their shutters, jeered and hurled stones and shoes at soldiers accompanying officials distributing tax-survey forms. The traders don't want their business, much of which involves the black market, to be documented, and they rightly fear corruption--or worse--by tax officials. (Last month, a Faisalabad shopkeeper died in shackles while being questioned by tax authorities.) Complicating matters is the merchants' affiliation with the religious right, a constituency no Pakistani leader has dared to challenge<<<
 
The Pakistani rupee continued to gain ground against the US dollar in the open market on Wednesday, rising by Rs4 against the greenback.

According to the Forex Association of Pakistan, the rupee had gained Rs4 against the dollar and was changing hands at Rs313 at 12:15pm. It said that the dollar was selling for 313 in the open market while it was being bought for 310.

In the interbank market, however, the local currency decreased by 65 paisa to come to 306.45 from yesterday’s close of 307.10.

Malik Bostan, Chairman of Exchange Companies Association of Pakistan, said that the government and the relevant authorities had taken strict steps to control the “black market” which had resulted in the gap between the open market and the interbank to reduce.

DAWN
 
From what i heard on other platforms, there are plain cloth officers posted outside Forex offices. They are threatening buyers if they are paying anything more than government fixed amount for dollars.. lets see how far this goes :)
 
SportsWarrior said:
From what i heard on other platforms, there are plain cloth officers posted outside Forex offices. They are threatening buyers if they are paying anything more than government fixed amount for dollars.. lets see how far this goes :)
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Isn't that what got them in this mess in the first place?
 
The US dollar (USD) goes down by 2.48 rupees in interbank this morning and trading at 304.50, ARY News reported on Thursday.

“The greenback rate dropped by two rupees in the open market and trading at 310 Pakistani rupees,” Forex dealers said.

Pakistani rupee (PKR) has made impressive recovery against the US dollar (USD) in the open market in three days, rising by Rs18 against the greenback, currency dealers said. “The banks selling the dollar to importers at Rs 305.70,” dealers said.

President Forex Association of Pakistan Malik Bostan has said that the US dollar will also enter in the reverse gear mode and will come down to Rs 300.

It is pertinent to mention here that the caretaker government has announced a crackdown against dollars smuggling following the identification of facilitators linked to government officials.

arynews.tv

Dollar goes down by Rs 2.48 in interbank, trading at 304.50

KARACHI: The US dollar (USD) goes down by 2.48 rupees in interbank this morning and trading at 304.50, ARY News reported on Thursday. "The greenback rate
arynews.tv arynews.tv
 
The upward trajectory of the rupee continued for a second day on Thursday as it extended its gains against the dollar in both the interbank and open market.

In the interbank market, the greenback was being sold at Rs304.50 by 10:30am, Rs2.48 lower than yesterday’s close of Rs306.98, according to the Forex Association of Pakistan (FAP).

In the open market, the dollar was selling for Rs307 in the open market — down by Rs5 from the previous day’s Rs312 by 12:45pm.
 
rpant_gabba said:
Isn't that what got them in this mess in the first place?
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yeah there is nothing that can be done by Pakistan. There are steps that can be taken to arrest the slide. But Pakistan does not have any fiscal or external space to do it. They have to let it float. This is already eroding opportunities for middle and lower middle class. Expect even the higher middle classes to be impacted too. Quality of life will drastically lower. For eg, the petrol prices have doubled or tripled in last couple of years. Transportation costs are a significant portion of lower and middle-class budget. I am sure none of their salaries have doubled or tripled. So this will lower whatever disposable income they had. Its not going to be pretty few years.
 
The rupee continued its upward trajectory on Friday, rising against the US dollar in the interbank and open market.

The rupee rose by Rs1.99 in the interbank market to close at Rs302.96 from the preceding close Rs304.94, according to the central bank.

Meanwhile, the dollar also fell in the open market. According to the Forex Association of Pakistan, the dollar was being traded at Rs301 in the open market at noon.

The development comes two days after the central bank decided to introduce structural reforms in the exchange companies’ sector in order to provide “better services to the general public and bring transparency and competitiveness”.

DAWN
 
The Pakistani rupee maintained its momentum against the US dollar, appreciating another 0.66% during the opening hours of trading in the inter-bank market on Monday.

At 10:15am, the rupee was hovering at 300.95, an increase of Rs2, in the inter-bank market.

During the previous week, the rupee appreciated 0.83% to settle at 302.95 against the US dollar in the inter-bank market, but there was much more to the story as its gap with the open market reduced massively while a reported crackdown on smuggling and speculation saw the currency reverse fortune after it hit a record low last Tuesday.

US inflation data for the month of August is due on Wednesday, with traders on the lookout for whether the world’s largest economy is indeed on track for a “soft landing”, and whether the Fed has further to go in raising rates.

The dollar, along with US Treasury yields, had surged last week after a run of resilient economic data added to bets that further rate hikes from the Fed may be on the horizon.

The dollar index, which capped last week with eight straight weeks of gains, its longest run since 2014, dipped slightly to 104.84.
 
The Pakistani rupee appreciated further against the US dollar in the open market, strengthening to the value in the inter-bank market where it was hovering at the 299 level on Tuesday.

Currency dealers Business Recorder reached out to said the rupee was being quoted at 299 for selling and 296 for buying purposes for customers in the open market, down from Monday’s levels.

The rates are now more or less equal to the rupee’s value in the inter-bank market, a rare occurrence for the local currency that has seen a volatile ride in the past few weeks.

Buisiness Recorder
 
WicketLord said:
Results are coming after Govt actions against currency dealers
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So why did it take so long. Lots of people have made billions and we know who they are. Another scam that the elite have used to fleece a poor country. If IK has stayed in power the Rp would have been in the 210-220 range, but at the moment in the open market its 330.
 
Crack down on smuggling and illegal currency exchangers are a good initiative. If it is implemented with good intention. If it is used only for propaganda purposes, it will not benefit the country
 
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i wonder how rupee is getting stabalized just because of a single visit of COAS to Karachi.
It means this Rupee caos is artificial and can easily be managed by taking some harsh steps.
 
After weakening a day ago, the Pakistan rupee registered some improvement against the US dollar in the open market on Thursday.

Currency dealers Business Recorder reached out to said the rupee was being quoted at 298 for selling and 295 for buying purposes for customers in the open market, stronger from Wednesday’s levels.

At the close of trading on Wednesday, the rupee closed at 301 and 298, according to data provided by the Exchange Companies Association of Pakistan (ECAP).

The rates are still more or less equal to the rupee’s value in the inter-bank market, a rare occurrence for the local currency that has seen a volatile ride in the past few weeks.

In the inter-bank market, the rupee was hovering at 297 against the US dollar.

Business Recorder
 
FIA seizes ‘billions’ in raid on plaza in Pindi
Raid is part of countrywide crackdown launched by agency on exchange companies involved in Hundi/Hawala business
The FIA Banking Circle has recovered billions of rupees foreign and local currency during a raid at an under-construction house in a residential area in Shamsabad.

The raid is part of the countrywide crackdown launched by the agency on the exchange companies involved in the Hundi/Hawala business.

After collecting evidence about the illegal trade, the Banking Circle raided a house in Rawalpindi and recovered 13 computerised iron lockers filled with foreign and local currency worth billions of rupees in cash. Two persons were arrested during the raid.

The Banking Circle conducted surveillance for a week before the operation. A small iron gate was found in the parking area of the double basement of the plaza. Spare construction equipment was also kept there.

The FIA team crashed the outer walls and heard a booming sound, which proved an empty space behind. On breaking the wall, they found a small secret door behind which lay 13 large iron lockers. Security system and cameras were also installed on the premises. According to reports, the FIA team and the plaza owner engaged in a bitter tiff over the uncovered money.

The plaza owner insisted that the authorities leave the money on site, while the FIA team said the recovered money would be seized.

www.thenews.com.pk

FIA seizes ‘billions’ in raid on plaza in Pindi

RAWALPINDI: The FIA Banking Circle has recovered billions of rupees foreign and local currency during a raid at an under-construction house in a residential area in Shamsabad.The raid is part of the...
www.thenews.com.pk www.thenews.com.pk
 
KARACHI: The Federal Investigation Agency (FIA) and secret agencies will conduct raids on homes in crackdown on US dollars hoarding, ARY News reported on Tuesday.

In the next phase of crackdown against USD hoarding, launched by the government, intelligence agencies will conduct raids at homes for recovery of the US currency, sources said.

According to sources, targeted homes have been pointed out with the help of the data gathered from exchange companies. “There are reliable reports that the dollar mafia has hoarded the greenback at homes after crackdown,” sources said.

ARY NEWS
 
The Pakistani rupee weakened marginally against the US dollar during the opening hours of trading in the open market on Wednesday.

Currency dealers Business Recorder reached out to said the rupee was quoted at 296.9 for selling and 294 for buying purposes for customers in the open market, lower by nearly Re1 as compared to rates on Tuesday.

At the end of trading on Tuesday, the rupee was quoted at 296 for selling and 293 for buying purposes, according to data provided by the Exchange Companies Association of Pakistan (ECAP).

Rates in the inter-bank and open markets are now firmly close to each other, reducing the premium that is one of the structural benchmarks of the International Monetary Fund (IMF) programme.

In the inter-bank market, the rupee was hovering at 293 level against the US dollar.

The rupee has regained momentum in recent weeks, owing to a countrywide crackdown by law enforcement agencies against illegal exchanges and smugglers of currencies.

Business Recorder
 
The Pakistan Stock Exchange (PSX) saw positive sentiment as the benchmark KSE-100 Index was up with a gain of over 450 points during the opening hours of trading on Monday.

At 11:10am, the benchmark index was hovering at 46,695.71 level, an increase of 463.12 or 1%.

Buying was witnessed with index-heavy sectors including oil and gas exploration companies, OMCs, and technology & communication trading in the green.

During the previous week, PSX remained under pressure as the investors remained cautious and avoided taking fresh positions. The benchmark KSE-100 index declined by 188.56 points on a week-on-week basis and closed at 46,232.59.

However, despite the weekly decline, Pakistan’s benchmark KSE-100 Index witnessed double-digit growth of 12% in 3Q2023, as sentiments improved on the back of the International Monetary Fund (IMF) Stand-By Agreement (SBA) secured in July, stable currency, and announcement of elections, said Topline Securities in a report released last week.

The index was up 11% in USD terms in 3Q2023.

Earlier, the brokerage house predicted that the bourse could potentially come close to the 50,000 level near the general elections, assuming there is a “smooth election process” and the IMF approves the next tranche of the Stand-By Arrangement in November.

“We believe the Pakistan market can potentially experience an 8-10% pre-election rally thereby, has the potential to reach near 50k assuming a smooth election process and the approval of the IMF tranche in November,” said Topline Securities.
 
The Pakistani rupee has registered a remarkable surge against the US dollar, strengthening its position as the best-performing currency in September.

The dollar's depreciation continues, as a result of concrete measures taken against currency hoarders, signaling a positive trajectory for Pakistan's economy.

As the new business week commenced, the dollar's value in the interbank exchange further depreciated by Rs1.23, settling at Rs286.50.

This decline in the dollar's value is a continuation of the trend that began following the crackdown on currency hoarders and illicit transactions.

The sustained appreciation of the Pakistani rupee throughout September can be attributed to these ongoing efforts to stabilize the currency market.

Additionally, during the last week of the previous month, gold prices also exhibited a noteworthy decrease, aligning with the overall economic improvements in Pakistan.

Source: GNN News
 
Court martial if security men involved in smuggling: Bugti
Govt has intensified its crackdown on smugglers involved in transporting commodities, dollars to Afghanistan

ISLAMABAD: Caretaker Interior Minister Sarfraz Bugti said on Monday any personnel of security forces found involved in cross-border smuggling would be court-martialled.

The government has intensified its crackdown on smugglers involved in transporting commodities and dollars to Afghanistan, especially in the last few months when havoc was wreaked on the already weakening economy.

The crackdown bore fruit as speculation diminished and the rupee recovered sharply against the greenback to become the best-performing currency globally, but analysts fear another round of depreciation as they are sceptical about the long-term effects of administrative measures.

“If I say that security forces were not involved in [smuggling], it would not be right, as the [smuggled] items are transported in trucks, not camels,” Bugti said during a press conference here.

He said that Chief of Army Staff (COAS) General Asim Munir had told military personnel that whoever would be found involved in illegal cross-border trade would face the music. “Pakistan’s army chief had told his people very clearly: there would not only be court-martials, but those involved in such activities would also be sent to jail,” the security czar added.

Bugti told reporters that the army’s accountability mechanism is not made public and that’s why it was not in the knowledge of masses. “But the army has its own accountability [system], and we have not just seen it in this instance, but post-May-9 scenario as well.”

www.thenews.com.pk

Court martial if security men involved in smuggling: Bugti

ISLAMABAD: Caretaker Interior Minister Sarfraz Bugti said on Monday any personnel of security forces found involved in cross-border smuggling would be court-martialled. The government has...
www.thenews.com.pk www.thenews.com.pk
 
The PKR is expected to appreciate in October as well and then stabilise. Good stuff.
 
Weak rupee drives up external debt

• Central govt debt jumps 29pc year-on-year to Rs64tr by August-end
• Domestic, external loans rise to Rs39.8tr and Rs24.2tr, respectively
• SBP reserves fall $21m to $7.62bn

KARACHI: The central government’s debt, both within the country and to foreign entities, surged by nearly a third in the 12 months through August, reaching close to Rs64 trillion, State Bank of Pakistan data showed on Thursday.

The 29 per cent increase in debt amounted to Rs14.4tr, as the figure stood at Rs49.57tr by the end of August 2022.

Of the total amount, domestic debt rose 23pc to Rs39.79tr, up from Rs32.15tr in August 2022, whereas external debt jumped 39pc to Rs24.17tr, up from Rs17.42tr a year ago.

This rise in domestic debt is concerning as it takes up most of the country’s tax revenue, reducing funds available for development and slowing down economic growth. A significant chunk of the revenue is now being used just to service (pay off the interest and principal on) this debt, at the expense of economic growth.

In the first two months of this fiscal year (FY24), the total central government debt jumped 5.1pc. Factors like the high inflation rate of 29pc and interest rate of 22pc over these two months drove up domestic debt.

www.dawn.com

Weak rupee drives up external debt

Central govt debt jumps 29pc year-on-year to Rs64tr by August-end; domestic, external loans rise to Rs39.8tr and Rs24.2tr, respectively.
www.dawn.com
 
Pak rupee best performing currency in Asia so far
But at the same time, the value of the other Asian currencies relative to the dollar decreased

KARACHI: The Pakistani rupee has outperformed regional currencies so far this fiscal year as a result of a crackdown on illegal foreign exchange trade in grey and black markets.

According to data based on the MSCI Asia Emerging and Frontier Markets Index released by Topline Securities on Monday, the rupee has appreciated by 1.7 percent versus the dollar between July 1 and October 9, 2023.

But at the same time, the value of the other Asian currencies relative to the dollar decreased. In relation to the dollar, the Malaysian ringgit plummeted by 1.4 percent, the Korean won by 2.5 percent, the Thai baht by 5 percent, and the Bangladeshi taka by 1.9 percent.

When Pakistan’s caretaker government took office in August, the currency was under tremendous pressure. But in September, the rupee outperformed global currencies, recovering all of its losses and rising by 6 percent against the dollar.

On September 5, the rupee plunged to a record low of 307.1 against the dollar, but since the country’s central bank and security forces started taking action the next day to stop black market activity, the rupee has recovered sharply. In just five weeks, the rupee has risen by about 9 percent against the dollar.

“The crackdown has worked in curbing the open market rate,” said Fahad Rauf, the head of research at Ismail Iqbal Securities. “The economic fundamentals have not changed. Any further appreciation would probably create another bubble. SBP should step in to buy dollars and encourage exporters,” he added.

www.thenews.com.pk

Pak rupee best performing currency in Asia so far

KARACHI: The Pakistani rupee has outperformed regional currencies so far this fiscal year as a result of a crackdown on illegal foreign exchange trade in grey and black markets.According to data...
www.thenews.com.pk www.thenews.com.pk
 
Pakistan Rupee has continued its winning streak against the US Dollar in interbank trading and reached R277.78 with an increase of 78 paisas on Friday.

The American currency has been continuously losing ground against the local unit and it has now been the 30th straight day.

The USD into PKR interbank rates reached Rs277.78 on Friday.

In the latest, on the 28th consecutive trading day decrease in the value of the dollar in the Interbank

In the interbank today, the dollar fell by Rs1.3 to Rs277.55.

The KSE-100 index continued its positive trend on the 10th consecutive day and reached 48953 with an increase of 180 points.

The US dollar saw another dip against the Pakistani rupee as it started Thursday's trading session in the interbank market.

The day opened with the American currency further shedding 91 paisas in the interbank market to settle at Rs278.60.

In the open market also, the dollar lost Re1 to settle at Rs278.

The greenback saw this dip in value in exchange for the Pakistani rupee, following the weeks-long trend of the currency's depreciation in both the interbank and open markets.

In the last five weeks, the US currency has depreciated by Rs52 in the open market and Rs28.42 in interbank trade.

On Wednesday, the mighty dollar dropped to a record low against the rupee as it fell below the Rs280 mark for the first time in three months.

At the start of the trading session on Wednesday morning, the US dollar fell by 86 paisas in the interbank market and reached the value of Rs279.65.

At the time of closing of the day's trading, the American currency lost Re1 and closed at Rs279.51.
 
Stronger rupee fails to bring down retail prices
The nine per cent jump in the rupee’s value against the dollar since Sept 5, sliding world prices and falling transportation costs have not brought any big price relief for the consumers in retail markets in nearly two months despite a downward trajectory in wholesale rates.

One dollar was trading at Rs307.10 on Sept 5 compared to the current rate of Rs280, making the landed cost of imported raw materials and finished goods cheaper. A sort of downward trend in diesel rates was also witnessed. It was priced at Rs311 per litre on Sept 1 which then rose to Rs329 on Sept 16. It then fell to Rs318 on Oct 1 and currently, its price is Rs303 per litre, making goods’ movement either lower or manageable for the transporters.

Retailers never show any mercy in instantly passing on the impact of the falling rupee and high transportation cost to the consumers, but they act too slowly in reducing the rates, repeating old rhetoric of clearing unsold old stocks in the markets lifted on higher rates.

The only instant price relief consumers have received is in sugar rates, thanks to an effective crackdown on sugar mafia, hoarders and smugglers, bringing down wholesale as well as retail rates.

The wholesale sugar rate has crawled down to Rs123 per kg from a peak of Rs174 during the first week of September, while the sweetener is now sold at Rs135-145 in retail markets versus Rs180-195, reveals data of Sensitive Price Indicator (SPI) relating to Karachi city.

The SPI data shows a mixed trend in retail rates of various pulses. The retail prices of masoor, moong, mash and gram pulse stood at Rs300-360, Rs280-320, Rs520-580 and Rs220-260 per kg compared to Rs320-360, Rs280-320, Rs540-580 and Rs240-280 per kg during the first week of September. The wholesale rates of masoor, moong, mash and gram pulse had plunged to Rs260, Rs240, Rs470 and Rs200 per kg, respectively, from Rs330, Rs265, Rs520 and Rs226 per kg.

Pulses imports rose to 386,837 tonnes ($242m) in 3MFY24 from 316,537 tonnes ($246m) in the same period last fiscal. The average per tonne price plunged to $628 from $777.

Ghee/cooking oil manufacturers claim to have reduced the price by Rs80-100 per litre over the last two months, but the SPI data shows a minor drop in the prices of ghee and cooking oil.

Palm oil imports rose to 793,951 tonnes ($758m) during IQFY24 compared to 761,424 tonnes ($1.135bn) during the same period last fiscal year. The average per tonne price fell to $955 from $1,191.

www.dawn.com

Stronger rupee fails to bring down retail prices

Crackdown on hoarders and smugglers leads to reduction in sugar prices.
www.dawn.com
 
Open-market: rupee’s slide against US dollar continues

The Pakistani rupee weakened further against the US dollar in the open market on Thursday, while the local currency also sustained losses in the inter-bank market.

During the day, currency dealers Business Recorder reached out to said the rupee was quoted at 284.5 for selling and 281.5 for buying purposes for customers.

At the end of trading, the local currency closed at the same rates, according to data provided by the Exchange Companies Association of Pakistan (ECAP).

On Wednesday, the rupee had closed at 283.5 for selling and 280.5 for buying.

In the inter-bank market also, the rupee maintained its downward trajectory and closed at the 283.43 level against the greenback.


www.brecorder.com

Open-market: rupee’s slide against US dollar continues

The Pakistani rupee weakened further against the US dollar in the open market on Thursday, while the local currency...
www.brecorder.com
 
The Pakistani rupee weakened further against the US dollar in the open market on Friday, while the local currency also slipped lower in the inter-bank market.

During the day, currency dealers Business Recorder reached out to said the rupee was quoted at 285 for selling and 282 for buying purposes for customers.

At the end of trading, the local currency closed at the same rates, according to data provided by the Exchange Companies Association of Pakistan (ECAP).

On Thursday, it had closed at 284.5 for selling and 281.5 for buying.

In the inter-bank market, the rupee closed at the 284.31 level against the greenback.


Brecorder
 
Strong demand, dwindling inflows fuel dollar’s bull run

KARACHI: The dollar has fast-tracked regaining its lost ground as it reached closer to Rs285 in the interbank market after hitting its lowest in the middle of October.

Amid drying up inflows coupled with strong demand from importers, the greenback maintained its bull run by gaining Rs7.7 or 2.8 per cent in the last 10 sessions.

Currency experts counted several reasons which ended the rupee’s winning streak.

According to bankers dealing in the interbank market, the short supply of dollars was the main reason for the changed sentiment. However, many believe that inflows fell to a lower level. The market also observed that the hopes for foreign investments from the Middle East have vanished after the Israeli attacks on Gaza.

Experts say IMF’s second tranche unlikely to boost inflows

“The latest violence by terrorists in the country could further destabilise the political and economic environment and a kind of uncertainty has emerged over the future of economic trends,” said a senior banker. The government is sure about the economic stability but the growth in the economy is still fragile.

“The situation is not conducive for boosting economic activities, as the textile sector, the biggest exporter of the country, is suffering due to higher electricity and gas prices while the cost of doing business is the highest in the region,” said Amir Aziz, an exporter of finished textile products.

He said it is hard to continue with the current economic situation particularly the import restrictions and high cost of production.

Exporters find the dollar appreciation an encouraging sign for their profits but the imported inflation through high-valued dollars could jeopardise the growth, particularly in the large-scale manufacturing sector.

Just two months before the dollar appreciated to a record Rs307.10 on Sept 5 which compelled the government to start a crackdown to stop illegal currency business and smuggling.

It produced some positive results and brought down the dollar to Rs276.63 on Oct 16 from the peak of Rs307.1 on Sept 5, a decline of Rs30.47 or 9.9 per cent in 40 days.

“Rupee felt the heat last week losing Rs4 in five sessions. Export proceeds have slowed down as a substantial export amount is being adjusted against export forwards done earlier, ever since the crackdown on the forex market,” said CEO of Tresmark, Faisal Mamsa.

Typically, USD/PKR also gets volatile when IMF team is visiting and this time round, it would seem that the banks were not allowed to fund their nostros through buy-sell swaps either, resulting in forward premiums coming up and importers paying a wider spread to process their payments amidst a dearth of dollar liquidity, he said.

He said the forward premiums for one, two and three months were last traded at 200, 300 and 600 paise (significantly up from last week at 0, 0 and 90 paise).

“The dollar looks to consolidate at Rs285 for the coming week, with an occasional spike to Rs288, and with the market expecting it to recover once the IMF gives Pakistan a clean chit,” said Mr Mamsa.

Dawn
 
Rupee falls further amid smooth talks with IMF

KARACHI: The rupee extended losses against the US dollar in both currency markets on Monday despite smooth talks with the IMF team.

The dollar surged by Rs2 in the open market giving a sense of steep PKR depreciation at Rs287 compared to Rs285 on Nov 3.

The interbank market noted a decline of 98 paise to 285.29 from Rs284.31 in the previous session.

Currency experts said that despite the expected positive outcome from the IMF talks, the market was not ready to stop chasing the greenback at higher rates.

The dollar’s winning streak entered the 11th consecutive session on Monday. It hit its lowest at Rs276 on October 16 after the rupee started its recovery drive on Sept 5 following a crackdown on illegal forex trading and smuggling to Afghanistan and Iran.

Some bankers believe that a short supply of dollars and poor growth of exports could further weaken the local currency. Experts said the announcement of general elections on Feb 8, 2024, has attached some additional uncertainty in the political and economic scenario.

A currency dealer said the spike in the dollar rate in the open market reflects the short supply of dollars and future uncertainty.

DAWN​
 
The US Dollar started trading on Wednesday morning at Rs286.50 after witnessing a jump of 11 paisas in the interbank currency market.

According to currency dealers, the American currency a short while later made a big jump of 61 paisas in the interbank trade against the Pakistani Rupee and reached the value of Rs287.

At the end of the trading session on Tuesday, the US Dollar closed at Rs286.90 after a hike of 87 paisas in the interbank market. In the open market, the currency maintained its value of Rs288, as per currency



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USD to PKR – Dollar rate in Pakistan today: November 8, 2023

Price of US Dollar against Pakistani Rupee has gone out of control once again, as its demand increases over the past couple of weeks
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Rupee suffers 15th straight loss vs dollar

KARACHI: The rupee on Monday continued losing its value despite falling demand for US dollars in the interbank market.

The State Bank of Pakistan (SBP) reported the greenback closed at Rs287.55 after gaining 52 paise over last session’s Rs287.03. The local currency has weakened by four per cent against the dollar since the start of the declining trend in mid-October.

Currency experts and dealers have no clue about the endpoint of the rupee’s losing streak which entered the 15th consecutive session, gradually drifting to an all-time low of Rs307.10 hit in the first week of September.

However, they blame the short supply of dollars as the common factor behind the day-on-day deprecation of the local currency. Some experts say the PKR devaluation has no match with the other regional currencies’ depreciation.

“The devaluation of local currency is not the regional trend. It is the case of weak fundamentals with low foreign exchange reserves and the country’s dependence on borrowed help from external sources,” said a senior banker.

Pakistan is currently engaged with the IMF for the release of a second tranche of $710m under the nine-month $3bn Standby Arrangement (SBA).

Despite positive signals from the government side about the ongoing first quarterly review under the SBA, the market sentiments remained depressive not allowing the local currency to resist further decline in its value.

Bankers said the government has been paying for the debt servicing during the current fiscal year while it succeeded in keeping the foreign exchange reserves reasonably at $7.5bn. However, bankers maintained that the SBP was one of the major buyers of dollars from the banking market.

Currency dealers said the inflows during September and October remained high mainly due to dollar depreciation which forced the exporters to sell out their maximum proceeds.

At the same time, others found it hard to hold on to their dollar savings while its price was falling in the interbank market after a crackdown launched against the smuggling and illegal currency business.

“This will be shocking news for the government that imports have been declining which would reduce the current account deficit but will badly hit the economic growth,” said a senior analyst not willing to be identified.

He said the elevated inflation of around 30pc has increased the cost of doing business to unsustainable levels making it impossible for trade and industry to even think about fresh investment.

Bankers and researchers said the only major change could be possible with the high inflows of foreign direct investment (FDI). They said the government planned to invite investors mainly from the Middle East but the Israeli war on Gaza would not allow the investors from Arab countries to explore opportunities in Pakistan.

The FDI in the first quarter of FY24 witnessed an improvement of 15pc to $402 million, but it is too meagre to bring any change in an economy of 250 million people.
​
DAWN
 
Dual exchange rate resurfaces in banking market

KARACHI: The banking currency market is again operating on a dual-rate system, where dollars are selling at a premium compared to the official exchange rate, particularly impacting small-scale importers, banking sources said on Saturday.

The discrepancy comes even though there are no official restrictions on imports or the opening of letters of credit (LCs).

Atif Ahmed, a currency dealer in the interbank market, said that while a few importers could still access dollars at the official rate, most, especially small importers, were charged Rs2 to Rs3 more per dollar than the official rate quoted by the State Bank of Pakistan (SBP).

Bankers noted that opening LCs became relatively easier during the government’s recent discussions with the International Monetary Fund (IMF). In its report, the lender has expressed concerns about Pakistan’s exchange rate policies, advising against administrative measures to control currency movements.

The SBP denies intervening in the banking sector’s currency market, but bankers allege receiving verbal instructions from the SBP. They claim that sometimes the central bank opens the exchange rate in the morning, and the banks are supposed to follow that rate.

Before September, the open market was plagued by a parallel market that severely disrupted the official exchange rate, diverting some $4 billion in remittances to illegal channels.

However, a crackdown on this illegal market in early September led to a significant drop in the open market exchange rate, with the rupee strengthening from 330 to 277 against the dollar.

The dollar has recouped some of those losses recently, appreciating in 17 consecutive sessions before declining by Rs1.64 in the last two sessions. Currency experts and analysts have been questioning the strength of the current exchange rate’s fundamentals.

An expert and currency analyst said that as soon as the staff-level agreement was reached with the IMF, the top machinery of the financial sector unleashed tough restrictions on imports.

“The verbal intervention was accompanied by market tactics to bring down the dollar against PKR,” said Faisal Mamsa, CEO of Tresmark. “Allegedly, import payments were postponed, new LC issuance was restricted and oversight in market trading was intense.”

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Dual exchange rate resurfaces in banking market

Insiders claim banks selling dollars at a premium, impacting small importers; discrepancy comes despite no restrictions on imports, LCs.
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Rupee largely stable at 285.37

KARACHI: Pakistani currency on Friday remained largely stable at slightly above Rs285 against the US dollar in the inter-bank market, as it continued to fluctuate around that level throughout the outgoing week.

According to State Bank of Pakistan’s (SBP) data, the rupee ticked down 0.04%, or Rs0.10, on a day-on-day basis and closed at Rs285.37 against the greenback.

Market talk suggests that the currency stayed in the positive territory for most of the day but lost some ground towards the close. It was the second consecutive working day when the market observed the same trend, cumulatively losing a meagre 0.08%, or Rs0.24, in the rupee value over two days.

The Exchange Companies Association of Pakistan (ECAP) on Friday revised down the rupee-dollar parity by Rs0.50 to Rs286.50 in the open market.

The rupee edged down after two related major developments including the fall in SBP-held foreign exchange reserves by $217 million on a week-on-week basis to $7.2 billion.

The reserves were already at a low level of less than two months of import cover. The latest drop in reserves has the potential to further weaken the currency in the absence of foreign currency inflows from international creditors and investors.

Secondly, caretaker Finance Minister Dr Shamshad Akhtar a day ago termed Pakistan’s foreign debt unsustainable, pressing policymakers to undertake structural reforms to control the debt pile and create more room for economic activities.

Almost one-third of the revenue to be generated by the Federal Board of Revenue (FBR) will go to interest payments in the current fiscal year 2023-24, leaving a very little fiscal space for executing development projects. This development stands negative for the rupee-dollar parity.

Market talk indicates that the rupee is stabilising around current levels with an end to speculative activities in the currency market after the government imposed a 40% tax on the windfall income of banks earned from rupee-dollar trade in the previous two years ie, 2021 and 2022.

An expert cautioned recently that the rupee should stabilise around current levels, as “it lacks room for further gains”.

The prevailing high inflation is technically weakening the rupee. In addition to that, little inflows of foreign currency did not provide support to the rupee, as demand for the greenback surpassed its limited supply, he said.

The rupee may remain under pressure till inflation decelerates to the targeted range of 5-7% in the long run (by fiscal year 2025) and the country receives significant inflows such as billions of dollars in Saudi investment in the Reko Diq copper and gold mining project and for setting up an oil refinery.
​
tribune.com.pk

Rupee largely stable at 285.37 | The Express Tribune

Drop in forex reserves may put currency under pressure
tribune.com.pk tribune.com.pk
 
When will this stability of the rupee will benefit the local people of Pakistan? Inflation is still going strong and is getting more and more with every passing day.
 
The rupee fell on Monday, as importers sought dollars to meet their payment obligations amid a shortage of greenbacks in the market.

The rupee closed at 285.64 per dollar in the interbank market, down 0.09 percent from Friday’s close of 285.37, according to the State Bank of Pakistan. In the open market, the rupee lost 50 paisas to end at 287 per dollar.



The News
 
PML-N blames PTI govt for rupee devaluation

ISLAMABAD: As barbs flew in the Senate over the issue of rupee devaluation, the PML-N blasted the previous PTI government for giving absolute autonomy to the State Bank of Pakistan (SBP).

Leader of the House in the Senate Ishaq Dar not only criticised the PTI’s decision to make SBP unanswerable to the government but also blamed a handful of speculators for the economic mess.

He said there were individuals who caused a loss of trillions to the country for their “small gains”. He, however, said the country’s currency remained stable for four years from 2014 to 2017.

Senator Dar claimed that till December 2017, the Pakistani rupee was the most stable currency in Asia while when Nawaz Sharif left the government the dollar was at Rs104 and when former prime minister Shahid Khaqan Abbasi took office the dollar rate was at Rs124.

Speaking on his motion about the devaluation of rupee, Kamran Murtaza said the value of dollar in 1947 was Rs3.31 and there had been steady increase over the years in its value but it increased tremendously in recent years, as it rose to Rs335.

He insisted that dollar could not be controlled by holding a two-minute meeting and using force and that instead adopting a scientific method was imperative to achieve the desired results.

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PML-N blames PTI govt for rupee devaluation

Ishaq Dar says there were individuals who caused a loss of trillions to the country for their “small gains”.
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Rs70b money laundering uncovered
FBR reveals two firms, with support from banks, funnelled funds abroad

ISLAMABAD:
Pakistan’s tax chief on Wednesday disclosed that two importers of solar panels were involved in a Rs70 billion money laundering scheme after an internal investigation revealed the involvement of five commercial banks in transferring funds to destinations like Switzerland and Singapore.

“It is trade-based money laundering,” said Amjad Zubair Tiwana, the Chairman of the Federal Board of Revenue (FBR), while briefing the Senate Standing Committee on Finance on the alleged money laundering of Rs69.5 billion by two companies.

The money was transferred to countries like Switzerland, Singapore, and the United Arab Emirates against imports from China, according to FBR investigations. Over Rs16.5 billion was laundered to the UAE and Singapore alone, as shown in the report. The FBR investigation further revealed that five well-known commercial banks were used for laundering money overseas through heavy cash transactions.

M/s Bright Star transferred Rs47 billion out of Pakistan against solar panel imports and did not file income tax returns. M/s Moonlight Traders transferred Rs23.7 billion overseas despite having a “very weak financial position.”

The FBR worked out the Rs69.5 billion figure based on the scrutiny of the data of 63 importers, although almost the entire amount was transferred by just two companies.

If the data of all the 450 importers is properly scrutinised, the quantum of money laundering would be anywhere between $2 billion to $2.5 billion during the past five years, said Senator Musaddaq Malik of the PML-N.

Malik said that the State Bank of Pakistan (SBP) played the role of a silent spectator during this period and was still not forthcoming in taking action against the banks involved in the money laundering.

“Commercial banks allowed the transfer of import remittances to third countries without any no objection certificate from the Chinese exporters in violation of foreign exchange regulations and SBP’s instructions,” showed the report submitted before the Senate Standing Committee on Finance by the FBR.

“Banks’ statements of M/s Bright Star and M/s Moonlight Traders reflect mutual transfers of funds and indicate a business association between the two suspected companies that transferred Rs70.7 billion out of Pakistan on the basis of duty and taxes-free import of solar panels,” according to the report.


tribune.com.pk

Rs70b money laundering uncovered | The Express Tribune

FBR reveals two firms, with support from banks, funnelled funds abroad
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The US dollar fell by 22 paisas, or depreciated by 0.08%, against the rupee to close at Rs285.17 in the interbank market on Thursday, the State Bank of Pakistan said.

It was the third consecutive day that the greenback fell against the local currency in the interbank market.

On Wednesday, the dollar fell by 13 paisas to close at Rs285.39.

According to the Ismail Iqbal Securities, the rupee has depreciated by 20.60% CYTD and appreciated by 0.29% FYTD.


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US dollar falls by 22 paisas against rupee in interbank market

Greenback closed at Rs285.15
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Interbank closing: Rupee gains 12 paisas against US dollar

The Pakistani rupee recorded minor gains against the dollar in the interbank foreign exchange market on Tuesday.

The greenback shed 12 paisas to reach Rs283.78 at the closing of the market, as against the closing of Rs283.9 the previous day.

In the open market, the buying of the dollar was recorded at Rs283.9 while it was quoted at 286 for selling at the time of filing the story.

The Pakistan Exchange (PSX) also witnessed a positive session as the benchmark KSE-100 Index gained 414.46 points or 0.63% to reach 66,426.78 levels at the closing of the trading session.



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Interbank closing: Rupee gains 12 paisas against US dollar

PSX closes on a positive note as KSE-100 adds 414 points
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Declining inflows signal tough year for rupee, experts warn

KARACHI: The rupee is in for a rough ride next year, industry sources and currency experts have warned, insisting that the local currency might face a significant devaluation as its current facade of stability is not backed by economic fundamentals.

To back up their assertion, experts point to the current fiscal year’s data indicating troubling trends.

For instance, remittances dropped by 10.3 per cent year-on-year during the five months from July to November, resulting in a $1.3 billion loss compared to the year-ago period. This decline followed a $4bn decrease in remittances in the last fiscal year.

Export figures are also not encouraging, with proceeds falling 4.4pc to $2.57bn in November and rising by a meagre 2pc during July-November.

These dwindling inflows are set against the backdrop of import expenditures that are twice as high as exports during the five-month period, further straining the rupee’s position amid the rising demand and poor inflows of dollars.

“The PKR is facing many challenges. This is why traders are factoring in a 5-10pc depreciation next year as Pakistan suffers from near-zero growth, low productivity, and higher repayments with fewer avenues for raising foreign exchange,” said Faisal Mamsa, CEO of Tresmark.

Atif Ahmed, a leading currency dealer in the interbank market, expressed the same fear, particularly citing poor inflows. He said the current exchange rate was managed with tight control over imports and now it was too hard for the State Bank of Pakistan (SBP) to keep the foreign exchange reserves at $7bn.

“The SBP buys dollars from the market to service debts and keep the reserves at $7bn, but it’s not going to last forever. Inflows like remittances, foreign direct investments (FDI) and export proceeds must rise to arrest the possible decline in the coming weeks,” he said.

While the caretaker government is trying to attract foreign investment, targeting a $100bn influx over five years through the Special Investment Facilitation Council, most experts remain sceptical.

Mr Mamsa points to the lack of trust, credibility and political instability as significant hurdles to achieving this ambitious target.

Though the Election Commission has announced the poll schedule, there is no clarity about the next government and its strategy to boost the economy.

Amir Aziz, an exporter of finished textile products, said, “We don’t know how the new government will tackle this ailing economy under enormous pressure of poor economic indicators.”

He said there was no alignment between the economic growth and the strategy. All efforts, he said, were being made to avoid default, reduce trade and current account deficits and follow IMF directions in every segment of the economy.

“There is no indigenous plan or strategy to improve the country’s economic health, which has been dire for the last 20 months,” he lamented. “Trade and industry find it challenging to keep functioning in the face of 29pc inflation, 22pc interest rate and curbs on raw material imports.”
​
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Declining inflows signal tough year for rupee, experts warn

Say traders are already factoring in a 5-10pc depreciation in 2024.
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Rupee appreciates further

KARACHI: Pakistani currency maintained its uptrend for the fifth successive working day on Monday, reaching over six-week high at slightly above Rs283 against the US dollar in the inter-bank market as supply of the foreign currency increased.

According to State Bank of Pakistan’s (SBP) data, the rupee ticked up 0.02%, or Rs0.05, and closed at Rs283.21 against the greenback. The currency has cumulatively gained a net 0.85%, or Rs2.43, in the past around three weeks.

Exchange Companies Association of Pakistan (ECAP) reported that the rupee remained unchanged at Rs284.50/$ in the open market for the fourth consecutive working day.

Market talk suggests that a current account surplus of $9 million in November 2023, which came after a hiatus of four months, kept sentiment positive in the inter-bank market, helping the rupee to extend gains for another day.

Besides, the signing of memoranda of understanding with China for investments of $10 billion in Pakistan and improvement in the central bank’s foreign exchange reserves also propped up the rupee.

Talking to APP, ECAP General Secretary Zafar Paracha said that workers’ remittances reaching Pakistan through currency exchange companies had surged 10-15% following a recent crackdown on hoarders and smugglers.

He said the government’s crackdown proved to be very effective in bolstering Pakistan’s reserves.

“We’ve seen a substantial rise in remittances flowing into the country through exchange companies, whose daily exchange value has increased to $50 million.”

tribune.com.pk

Rupee appreciates further | The Express Tribune

Stands at 283.21/$ as remittances via exchange firms rise 15%
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Open-market: rupee drifts higher against US dollar

The Pakistani rupee registered slight gain against the US dollar in the open market on Wednesday, while the local currency also extended its uptrend in the inter-bank market.

At the end of trading, the rupee closed at 283.20 for selling and 280.79 for buying purposes, according to data provided by the Exchange Companies Association of Pakistan (ECAP).

On Tuesday, it had closed at 283.70 for selling and 281.23 for buying purposes.

In the inter-bank market, the rupee continued to march upward against the US dollar for the 11th successive session as it appreciated 0.06% on Wednesday. As per the State Bank of Pakistan, the local unit settled at settled at 282.20 after an increase of Re0.17 against the greenback.

The market awaits the International Monetary Fund (IMF) executive board meeting scheduled on January 11, which will decide on the release of the next tranche of $700 million to Pakistan under its ongoing $3 billion Stand-by Arrangement (SBA).


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Open-market: rupee drifts higher against US dollar

The Pakistani rupee registered slight gain against the US dollar in the open market on Wednesday, while the local...
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Rupee reaches nearly 2-month high

KARACHI: Pakistani currency hit almost two-month high at slightly above Rs282 against the US dollar in the inter-bank market on Wednesday, maintaining its uptrend for the 11th consecutive working day amid improved supply of the greenback.

According to State Bank of Pakistan’s data, the rupee appreciated 0.06%, or Rs0.17, and closed at Rs282.20 against the greenback. The currency has cumulatively gained 1.22%, or Rs3.44, in the past five weeks, signalling importers are purchasing a lesser amount of US dollars compared to the sale of export proceeds by exporters in the market.

Exchange Companies Association of Pakistan reported that the rupee rose Rs0.56 to Rs283.20/$ in the open market. Market talk suggests that the currency has gradually improved in the wake of government’s strategy to keep the current account balance at breakeven by limiting imports to levels equal to the sum of export earnings and workers’ remittances.

The current account balance registered a nominal surplus of $8 million in November after recording manageable deficits in the prior four months.

The rupee made gains ahead of the IMF's executive board meeting scheduled for January 11, 2024

Furthermore, the government on Wednesday raised almost Rs2 trillion in financing through the auction of three to 12-month treasury bills (T-bills), which constituted four times the auction target of Rs500 billion. Banks offered total financing of Rs2.79 trillion. They offered a higher amount for the longer-tenure (12-month) papers ahead of a potential reduction in the rate of return from early 2024, locking returns at 21.4%. Cut-off yields remained unchanged at 21.44% for three-month papers and at 21.39% for six-month bills.
​
tribune.com.pk

Rupee reaches nearly 2-month high | The Express Tribune

Maintains uptrend for 11th day in a row, hits 282.20/$
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Rupee recovers further, stands below 282/$

KARACHI: Pakistani currency maintained its winning streak for the 12th consecutive working day on Thursday, appreciating to a new two-month high at slightly below Rs282 against the US dollar in the inter-bank market.

It came ahead of the International Monetary Fund (IMF) executive board meeting for approval of the release of second loan tranche of $700 million in January 2024.

At the same time, gold hit a one-month high at Rs222,800 per tola (11.66 grams) in line with the global trend.

According to State Bank of Pakistan’s (SBP) data, the rupee rose 0.10%, or Rs0.27, and closed at Rs281.93 against the greenback. With fresh gains, the currency has cumulatively increased 1.32%, or Rs3.71, in the past five weeks.

Exchange Companies Association of Pakistan reported that the currency appreciated 0.18%, or Rs0.52, in the open market and closed at Rs282.68/$.

Pakistani currency has maintained its rally since a staff-level agreement was reached with the IMF at the successful completion of first review in mid-November under the $3 billion loan programme.

It will clear the way for the disbursement of second loan tranche of $700 million to Pakistan. The IMF executive board is scheduled to give its nod in a meeting slated for January 11, 2024.

The board’s approval is projected to unlock another $1.5-2 billion from other multilateral and bilateral creditors.

The Asian Development Bank (ADB) has already inked an agreement for a financing of $1.2 billion for Pakistan. Besides, the World Bank has recently approved a loan of $350 million.

All Pakistan Saraf Gems and Jewellers Association reported that gold price surged 1%, or Rs2,200, and settled at Rs222,800 per tola.

The local market took cue from the international trend where the precious metal gained almost 1%, or $20, to $2,105 per ounce (31.10 grams), according to the association.

A prolonged geopolitical crisis in the Middle East and likely reduction in the benchmark policy rate in the near future are prompting investors to park their savings in gold, which is considered a safe-haven asset.
​
tribune.com.pk

Rupee recovers further, stands below 282/$ | The Express Tribune

Gold at 1-month high in line with soaring global market
tribune.com.pk tribune.com.pk
 
Rupee continues upward trend against US dollar

The Pakistani rupee (PKR) continued its upward trend against the US dollar in the interbank on Tuesday, ARY News reported, quoting forex dealers.

According to the forex dealers, the PKR appreciated by Re0.03 in the interbank and was closed at Rs281.89.

The greenback is being sold to the importers by banks at Rs282, while in the open market, the dollar is being sold at Rs282.50.

The rupee closed at 282.79 against the US dollar.



arynews.tv

Rupee continues upward trend against US dollar

KARACHI: The Pakistani rupee (PKR) continued its upward trend against the US dollar in the interbank on Tuesday, ARY News reported, quoting forex dealers.
arynews.tv arynews.tv
 
Open-market: rupee edges higher against US dollar

The Pakistani rupee registered slight gain against the US dollar in the open market on Wednesday, while the local currency also appreciated in the inter-bank market.

At the end of trading, the rupee closed at 282.42 for selling and 279.94 for buying purposes, according to data provided by the Exchange Companies Association of Pakistan (ECAP).

On Tuesday, it had closed at 282.53 for selling and 280.04 for buying purposes.

In the inter-bank market, the rupee was back to winning ways against the US dollar, gaining 0.06% on Wednesday. As per the State Bank of Pakistan, the local unit settled at 281.72 after an increase of Re0.17 against the greenback.

The market awaits the International Monetary Fund (IMF) executive board meeting scheduled on January 11, which will decide on the release of the next tranche of $700 million to Pakistan under its ongoing $3 billion Stand-by Arrangement (SBA).

Foreign exchange reserves held by the SBP witnessed a significant increase of $852 million on a weekly basis, clocking in at $7.75 billion as of December 22, SBP data showed.



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Open-market: rupee edges higher against US dollar

The Pakistani rupee registered slight gain against the US dollar in the open market on Wednesday, while the local...
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The Pakistani Rupee continued its winning run against the US Dollar, as it appreciated by 5 paisas in the interbank market.

On Thursday morning, the mighty American currency depreciated by 0.02% and started trading at Rs281.67 in the interbank market.
 
The rupee is very much settled in the last few months under the current caretaker government but I am expecting it to change after the general election.
 
Rupee’s rise spurs dollar inflows

KARACHI: The regular appreciation of the rupee has compelled exporters to sell their dollars in the banking market, which has helped the exchange rate remain stable, said sources in the financial sector.

The financial sector also noted another confidence boost with hopes attached to the Special Investment Facilitation Council (SIFC), as business delegations from Gulf countries have started visiting Pakistan to explore opportunities.

“The daily depreciation of the dollar is the root cause of selling dollars by exporters since even a 10 paisa [difference] matters for the huge inflows of export proceeds,” said Atif Ahmed, a currency dealer in the inter-bank market.

The market also witnessed forward selling of dollars by exporters.

“Banks are confident that exporters are not holding their dollars for better returns,” added Mr Atif.

The surge in the State Bank of Pakistan’s reserves, positive responses from the IMF, and increasing hopes for a better result from SIFC have built confidence in the financial market.

“Business delegations from Gulf countries are visiting Pakistan, exploring opportunities for investments, which shows confidence in the newly formed SIFC. No decision of SIFC is challengeable in any courts in the country, which is another confidence-boosting situation for foreign investors,” said a known businessman who interacts with foreign business delegations.

He mentioned that corporate farming for foreign investors has started in Pakistan, with a number of blocks allocated for crop cultivation in Punjab and Balochistan. He said agriculture holds great

attraction for foreign investors, particularly from Gulf countries.

Currency dealers in the open market stated that the exchange rate is stable, and there is no Hundi and Hawala transactions anymore.

When asked why the rupee is gaining against the dollar, the secretary general of the Exchange Companies Association of Pakistan, Zafar Paracha, replied that SBP’s increasing reserves of and the positive response from the IMF are supporting the local currency.

“The single exchange rate has produced good results and helped stabilise the exchange rate. If the crackdown against illegal currency business continues and smuggling is completely blocked, stability will remain intact,” said Mr Paracha.

He mentioned that the single exchange rate has enabled exchange companies to sell their maximum amount of dollars to the banks.

“We are selling $300 million to $350m per month to banks,” said Mr Paracha. Even if the average monthly selling of dollars remains at $300m, the banking market would receive more than $3.5 billion at the end of the fiscal year.

Bankers stated that the massive decline in twin deficits, trade and current account deficits, is helping economic managers keep paying for debt servicing. The financial sector believes that the current account deficit would not exceed $4bn during this fiscal year FY24.

www.dawn.com

Rupee’s rise spurs dollar inflows

Surge in SBP’s reserves and positive IMF responses boost confidence.
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Rupee stays stable at 10-week high

KARACHI: Pakistani currency ticked up to a 10-week high above Rs281 against the US dollar in the inter-bank market on Thursday, maintaining its winning streak for the seventh consecutive working day ahead of the International Monetary Fund’s (IMF) board meeting for potential approval of the release of second loan tranche of $700 million.

According to State Bank of Pakistan’s (SBP) data, the rupee inched up 0.01%, or Rs0.02, and closed at Rs281.11 against the greenback.

The currency has gained 9.25%, or almost Rs26, in the past four months compared to the all-time low of Rs307.10 hit in the first week of September 2023.

Exchange Companies Association of Pakistan (ECAP) reported that the rupee appreciated 0.08%, or Rs0.24, in the open market and closed at Rs281.94/$.

Workers’ remittances rose 13% to $2.38 billion in December 2023 compared to the same month of last year, signaling that foreign currency inflows were higher compared to their demand, which supported the strengthening of the rupee.

Taking cue from the downward trend in international crude oil prices, the rupee closed stable. With the weakening of crude prices, the demand for the greenback for fuel imports has decreased, as the country is a major importer of oil.

Market talk suggests that the local currency markets have priced in events like the IMF executive board meeting, which is likely to give its nod on Thursday for the release of loan tranche for Pakistan.

Its decision will unlock inflows from other multilateral and bilateral creditors. The much-needed foreign assistance will give a clear direction about the rupee-dollar exchange rate.

Multilateral lenders have already provided $1.3 billion in the two weeks ended December 29, 2023, taking Pakistan’s foreign exchange reserves, held by the SBP, to five-and-a-half-month high at $8.22 billion.
​
tribune.com.pk

Rupee stays stable at 10-week high | The Express Tribune

Dollar demand for fuel imports decreases after oil price fall
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Rupee hits 11-week high against US dollar

KARACHI: In a significant rebound, the Pakistani currency achieved an 11-week high, closing slightly over Rs280 against the US dollar in the interbank market. This surge is attributed to the rollover of $2 billion deposits by the United Arab Emirates (UAE) at the State Bank of Pakistan (SBP) and the disbursement of a new loan tranche of $706 million from the International Monetary Fund (IMF) on Wednesday.

According to the latest data from the SBP, the domestic currency appreciated by 0.05%, or Rs0.15, closing at Rs280.10 against the US dollar. Analysts anticipate that the currency will continue its upward trend, with the full impact of the UAE rollover and the IMF tranche expected to manifest in the coming days.

This recent uptick marks a cumulative bounce-back of 9.64%, or Rs27, over the past four months, compared to the all-time low recorded at Rs307.10/$ in the first week of September 2023. The positive momentum is further supported by the country’s current account balance, which reached a five-month high surplus at $397 million in December.

Additionally, foreign direct investment (FDI) showed notable improvement in December, suggesting that inflows may continue to increase alongside the growing optimism for economic activities in the country.

The Exchange Companies Association of Pakistan (ECAP) reported a 0.07% improvement, or Rs0.19, on a day-to-day basis, closing the open market rate at Rs280.73/$.

Market discussions indicate that these developments directly support the rupee against the US dollar and are likely to encourage multilateral and bilateral creditors, as well as global investors, to enhance financing activities in Pakistan.

Pakistan received the second tranche of the IMF loan, totalling $705.6 million, following the approval by the executive board on January 12. The successful completion of the first review of the domestic economy under the ongoing $3 billion loan programme two months ago in November 2023 further solidified the country’s economic position.

Real Effective Exchange Rate indicates fair value

The country’s real effective exchange rate (REER), which measures the value of the Pakistani currency against the basket of currencies of its trading partners, appreciated to 98.9 in December 2023, compared to 98.3 in the previous month of November 2023.

This reading suggests that imports have become slightly cheaper, while export competitiveness edged down slightly at the global level. However, the REER remains largely fair at present, as values within the range of 95-105 are considered fair. The SBP has maintained it near 95-96 during the years 2020-22.

tribune.com.pk

Rupee hits 11-week high against US dollar | The Express Tribune

Positive economic developments propel rupee to close at Rs280.10/$
tribune.com.pk tribune.com.pk
 
Rupee soars to 12-month high

KARACHI: In a notable trend, the Pakistani currency continues its upward trajectory for the third consecutive working day, reaching a new 12-month high below the crucial level of Rs280 against the US dollar in the interbank market on Friday. The State Bank of Pakistan’s (SBP) data reveals a 0.03% enhancement, with the currency closing at Rs279.90 against the greenback. Over the past four-and-a-half months, the currency has cumulatively surged by 9.72%, marking a significant recovery from the all-time low of Rs307.10/$ in the first week of September 2023.

This surge coincides with the signing of an agreement by the UAE to invest $3 billion in Pakistan’s trade infrastructure, focusing on ports and railways. Additionally, Caretaker Finance Minister Dr Shamshad Akhtar has announced Pakistan’s upcoming negotiations with the IMF for the final tranche of $1.1 billion, part of the ongoing $3 billion loan programme.

The commitment from the UAE and expected IMF inflows signal an optimistic outlook for the Pakistani rupee. Tresmark, a treasury firm, has forecasted a continued gradual upward rally for the rupee, projecting a potential rise to Rs77 against the greenback in the coming weeks.

Anticipating increased demand for foreign currency in the domestic economy, the government contemplates easing import restrictions on raw materials to stimulate economic activities. However, Exchange Companies Association of Pakistan (ECAP) reports a fresh downward trend in the open market, with a 0.08% or Rs0.23 decrease on a day-to-day basis, closing at Rs280.98/$.

This downward trend indicates relatively higher demand for the US dollar, particularly for individual transactions related to Umrah and Haj purposes. In previous developments, Pakistan received multilateral and bilateral inflows totalling around $6 billion in the first half (Jul-Dec) of the current fiscal year 2023-24, surpassing the $4 billion recorded in the same period of the prior fiscal year (FY23).
​
tribune.com.pk

Rupee soars to 12-month high | The Express Tribune

Closes at Rs279.90/$ on signing of $3b UAE investment agreement
tribune.com.pk tribune.com.pk
 
Rupee appreciates to three-month high

Pakistani currency hit a three-month high at slightly below Rs280 against the US dollar in the interbank market on Monday, remaining on its winning streak for the fourth consecutive day over optimism about an increase in inflows of foreign currency.

According to SBP data, the rupee ticked up 0.02%, or Rs0.05, and closed at Rs279.85 against the greenback. The currency has cumulatively gained 9.74%, or Rs27.25, in the past four and a half months compared to the record low of Rs307.10/$ hit in the first week of September 2023.

Exchange Companies Association of Pakistan reported that the rupee remained unchanged at Rs281.07/$ in the open market for the second consecutive working day.

Market talk suggests that exporters are now selling their withheld dollar proceeds in the inter-bank market following normalisation of diplomatic ties between Pakistan and Iran. Earlier, they partially held back dollar sales in the wake of tensions between the two neighbours over airspace violations.

The demand for US dollars is anticipated to go down after the IMF recommended Pakistan to come up with a mini-budget to increase tax collection and maintain a tight monetary policy.

However, the announcement of mini-budget will keep inflation at elevated levels. To counter that, the central bank will either keep its policy rate at the record high of 22% or further increase the borrowing cost.

tribune.com.pk

Rupee appreciates to three-month high | The Express Tribune

Stays below 280 vs dollar in inter-bank dealings
tribune.com.pk tribune.com.pk
 
Rupee rises for sixth day in a row

Pakistani currency continued to appreciate gradually for the sixth successive day on Wednesday, rising to a new three-month high above Rs279.50 against the US dollar in the inter-bank market in the wake of improved inflows of the foreign currency compared to its demand.

According to State Bank of Pakistan’s (SBP) data, the rupee strengthened 0.04%, or Rs0.12, and closed at Rs279.67 against the greenback.

The currency has cumulatively gained 9.80%, or Rs27.43, in the past four and a half months compared to the all-time low of Rs307.10/$ hit in the first week of September 2023.

Exchange Companies Association of Pakistan (ECAP) reported that the rupee rose 0.08%, or Rs0.23, on a day-on-day basis, closing at Rs280.86/$ in the open market. A leading analyst said the local currency was drawing support from lower demand for the greenback for imports while its supply stood better through an increase in export earnings and remittances sent home by overseas Pakistanis.

The higher inflows were well reflected in the six-month high current account surplus of $397 million recorded in December 2023, the analyst said.

Citing Caretaker Finance Minister Dr Shamshad Akhtar, she said Pakistan’s foreign exchange reserves hit an 18-month high at $9.1 billion after release of the International Monetary Fund’s (IMF) loan tranche of $700 million recently, which supported the rupee to maintain its uptrend.

The analyst believes the rupee will continue to appreciate in the short run until import payments surpass the sum of export proceeds and workers’ remittances.

She said the current account balance would achieve breakeven level in the coming months. Besides, financing from multilateral and bilateral creditors is expected to continue pouring in, depicting a positive outlook for the rupee.
​
tribune.com.pk

Rupee rises for sixth day in a row | The Express Tribune

Settles at 279.67 vs dollar with better foreign currency inflows
tribune.com.pk tribune.com.pk
 
Rupee likely to end fiscal year on stable note

The rupee’s depreciation is unlikely during the remaining period of the current fiscal year as inflation has left no space for its decline, experts said on Saturday.

The exchange rate looks stable since the rupee is valued below Rs280 against the US dollar, though some analysts believe it might end up at Rs310 with the completion of current fiscal year.

“The fiscal year started with USD/PKR at 286. Judging by historic trends, an annual depreciation of 7pc to 10pc is typical, which supports the exporters and maintains REER (Real Effective Exchange Rate) near par. This implies that June-end closing rates would be around 310 per dollar,” said Faisal Mamsa, CEO of Tresmark, a financial terminal for real-time market rates, charts and financial data.

“As of today, the rupee is actually stronger by around two per cent, and major depreciation looks unlikely,” he added.

However, most of the analysts and researchers believe relentless inflation now covers the entire economy and all efforts are being made to deal with this uncontrolled enemy of the economy.

Not only does inflation refuse to go away, but all other policies are directed towards normalising it. It’s a global problem with most economies prioritising inflation over economic growth. This is also reflected in government’s policies. The economic growth has been compromised to counter inflation by keeping the interest rate at 22pc.

When the rupee depreciates, it adds to the imported inflation component. To avoid this, a policy to strengthen the local currency has been adopted, said an analyst. This is part of the established “reverse currency wars” with the objective to keep a lid on inflation.

The general elections scheduled for Feb 8 have also added uncertainty to the current economic scenario. Analysts say the new government is unlikely to rock the boat unless inflation cools down significantly from 29.7pc in December. Consequently, the rupee is headed towards a soft close by the end of June this year.

Exporters have failed to improve their performance despite encouragements from the government. The government is trying to fix a rate of nine cents per watt electricity for the industry which would ultimately support the exporters. The plan, however, requires approval by the IMF.

“This high cost of production has created immense pressure for the State Bank to bring down the interest rate, but the unpredictable inflation has closed the door for interest rate cut in the next money policy,” said S.S. Iqbal, a money market expert and dealer.

He said the State Bank would announce the monetary policy on Monday and most of the analysts predict no change in the interest rate, particularly due to high inflation. However, the central bank is of the view that inflation would come down in the second half of the current fiscal year.

www.dawn.com

Rupee likely to end fiscal year on stable note

Analysts say relentless inflation has left no space for currency’s decline.
www.dawn.com
 
Rupee slips after 3-month high against dollar

The Pakistani currency finally receded from its three-month high, settling slightly above Rs279.50 against the US dollar in the interbank market due to a noticeable surge in demand for foreign currency, bringing an end to an almost month-long winning streak on Monday.

According to State Bank of Pakistan (SBP) data, the domestic currency edged down by 0.02%, or Rs0.05, closing at Rs279.64 against the greenback.

Earlier, the currency had gained a net of 9.84%, or Rs27.51, in the past four months, reaching a three-month high at Rs279.59/$ on Friday.

The Exchange Companies Association of Pakistan reported an opposite trend in the currency. The rupee improved by 0.02%, or Rs0.07, closing at Rs281.09/$, ending the two-day long downward streak in the open market.

The drop in the open market is observed after the demand for foreign currency increased, with foreign companies operating in Pakistan seeking to repatriate profits to their headquarters abroad. Secondly, the demand for imports has also risen recently, it was learnt.

Speaking at a press conference on Monday, State Bank of Pakistan (SBP) Governor Jameel Ahmad stated that profit repatriation has significantly increased in the first six months (Jul-Dec) of the current fiscal year 2023-24.

The central bank’s latest data indicates that repatriation has surged by 2.60 times, reaching $350 million in the first six months, compared to $217.6 million in the same period of the last year.

Ahmad added that import payments have surged by $700-800 million per month to $4.4-4.5 billion per month, compared to $3.7-3.8 billion in the recent past.

However, he believed that inflows of workers’ remittances sent home by overseas Pakistanis would increase to around $28 billion in FY24, compared to $27 billion in FY23. Earlier, the rupee had strengthened due to an increase in inflows from multilateral and bilateral creditors and improvements in export earnings and workers’ remittances.

tribune.com.pk

Rupee slips after 3-month high against dollar | The Express Tribune

Closes at Rs279.64 against greenback
tribune.com.pk tribune.com.pk
 
Policy status quo helps rupee resume uptrend

Pakistani currency resumed its uptrend on Tuesday after dropping a little bit a day ago, reaching over three-month high at Rs279.55 against the US dollar in inter-bank dealings.

The rupee got renewed support from the central bank’s decision to leave its benchmark policy rate unchanged at a record high of 22% for the next six weeks. The high cost of bank borrowing discourages imports, controls the soaring inflation and keeps demand for the greenback low compared to inflows in the economy.

According to State Bank of Pakistan’s (SBP) data, the domestic currency appreciated 0.03%, or Rs0.09, on a day-on-day basis in the inter-bank market. With the latest rise, the currency has cumulatively increased 9.85%, or Rs27.55, in the past four months since hitting the record low at Rs307.10/$ in the first week of September 2023.

Exchange Companies Association of Pakistan (ECAP) reported that the rupee gained 0.08%, or Rs0.23, and closed at Rs280.86/$ in the open market.

Talking to The Express Tribune, ECAP General Secretary Zafar Paracha said the currency had strengthened on the back of increase in supply of the greenback compared to its relatively lower demand.

“Both currency markets are taking cue from the demand and supply situation of the foreign currency as they now rely on a market-based system,” he said. The ECAP general secretary anticipated that the rupee would maintain its uptrend under the ongoing cycle of appreciation and would potentially rise to the high of Rs270/$ over the next four to six weeks.

He pointed out that the rupee had continued to strengthen in the wake of administrative measures taken by the government and the central bank including a crackdown on foreign currency smugglers and hoarders in the country.

He revealed that sales of dollars by currency exchange companies in the inter-bank market had increased to an average of $300-350 million a month compared to $40-50 million a month before the administrative measures were enforced in the first week of September.
​
tribune.com.pk

Policy status quo helps rupee resume uptrend | The Express Tribune

Currency hits 3-month high at 279.55 against dollar
tribune.com.pk tribune.com.pk
 
Rupee rises, but market gap widens

Pakistani currency rose to over three-month high at slightly below Rs279.50 against the US dollar in the inter-bank market on Friday, maintaining its winning streak for the fourth consecutive working day in the wake of increase in supply of foreign currency.

In the open market, however, the currency continued its downturn for the second successive day as it stayed above Rs281 against the greenback.

Accordingly, the difference between currency values in the two markets kept on widening, which triggered some concern. Earlier, a significantly larger spread had made the currency volatile in September last year.

According to SBP data, the rupee ticked up 0.03%, or Rs0.07, on a day-on-day basis in the inter-bank market, and closed at Rs279.41/$.

Exchange Companies Association of Pakistan (ECAP) reported that the local currency dropped a fresh 0.04%, or Rs0.13, to close at Rs281.21 in retail trade.

The movement in the rupee value in opposite directions in the inter-bank and open markets caused the widening of difference to 0.64%, or Rs1.80.

SOURCE: https://tribune.com.pk/story/2455297/rupee-rises-but-market-gap-widens
 
US Dollar dips in interbank market against Pakistani Rupee

The US dollar saw a slight depreciation in the interbank market on Tuesday. The American currency had closed trading on the last business day at Rs279.41, and began trading on Tuesday morning at Rs279.30, marking an 11-paisa (0.04%) decrease in value.

This follows a trend of recent volatility in the dollar's exchange rate in Pakistan. Last week, the US Dollar closed at Rs279.41 indicating a gradual decrease since then. Analysts attribute this movement to various factors, including:

Fluctuations in global oil prices: Pakistan heavily relies on imported oil, and changes in its price can impact the dollar's value.

Monetary policy decisions: The State Bank of Pakistan (SBP) implements policies that can influence the exchange rate.

Import and export activity: Trade imbalances can affect the demand for dollars, impacting their value.

While the decrease is minor, it's noteworthy due to the current economic climate in Pakistan. The country faces various challenges, including inflation and a widening current account deficit. Stability in the foreign exchange market is crucial for economic growth and investment.

SOURCE: https://www.samaa.tv/208739322-us-dollar-dips-in-interbank-market-against-pakistani-rupee
 
Pakistani Rupee thrashes Dollar a day before elections

Pakistani Rupee gained 17 paisas value against the US Dollar in the interbank trading on Wednesday, a day before the general elections.

The new price of the US dollar has reached Rs279.25.

Earlier, S&P Global Ratings said a more stable political environment in Pakistan is likely to be an important precondition to repairing the government’s creditworthiness.

The ratings agency stated that together with new policy moves to improve investor confidence and bring down inflation, this could lift fiscal and external metrics sufficiently for the sovereign ratings to move to the “B” rating category.

It further stated that if the coming elections yield a government that has popular support and able to work with key institutions in the country, it will have a better chance of securing external financing from the International Monetary Fund (IMF).

SOURCE: SAMAA NEWS
 
Rupee ticks up to 3-1/2-month high

Pakistani currency on Wednesday hit three-and-a-half-month high at Rs279.34 against the US dollar in the interbank market, maintaining its winning streak for the second consecutive day apparently in the wake of higher inflows of foreign currency.

According to SBP data, the rupee appreciated 0.03%, or Rs0.08, on a day-on-day basis. With the fresh uptick, the currency has cumulatively risen 9.93%, or Rs27.76, in the past five months.

Exchange Companies Association of Pakistan reported that the rupee went up 0.03%, or Rs0.08, closing at Rs281.05/$ in the open market.

The currency has maintained its uptrend after the credit rating agency, S&P Global, hinted at upgrading Pakistan’s rating to “B” following the formation of a new government post-Thursday’s elections, subject to the economic roadmap to be followed by the new rulers.

There are strong reports in the market that the new government, irrespective of whoever comes to power, will immediately engage in talks with the IMF to secure a new bailout package, as the ongoing loan programme of $3 billion is going to end in March this year.

SOURCE: https://tribune.com.pk/story/2455786/rupee-ticks-up-to-3-12-month-high
 
Rupee stays resilient despite challenges

Despite being surrounded by political and economic uncertainties, the local currency remained stronger against the US dollar in the interbank market.

The exchange rate, which has been a serious cause of concern for the government as well as stakeholders in the economy, remained stable for over two months.

The State Bank of Pakistan reported the dollar rate at Rs279.34 in the interbank market from Rs279.42 the previous day, with PKR appreciating by eight paise on Wednesday.

While currency dealers stated that the exchange rate is being managed to some extent, no objection from the International Monetary Fund (IMF) was heard. The IMF had been critical of the managed exchange rate, and it was one of the main objections raised by the donor agency before signing the $3 billion Stand-By Arrangement (SBA) in July 2023.

Dollar depreciation prompts swift selling of export proceeds

However, several currency dealers mentioned that the slow but regular depreciation of the dollar has convinced exporters to sell their proceeds before receiving less money in the next few days. This approach has enhanced the inflow of dollars into the banking market.

The banking market is also getting support from the open market with high inflows of dollars. The Exchange Companies Association of Pakistan recently reported that exchange companies have sold about $3bn to banks during the first seven months of the current fiscal year.

“There was a political uncertainty in the country due to general elections but there was no economic emergency. The high degree of political uncertainty has not affected the economy as expected by trade and industry,” said Amir Aziz, an exporter of the textile finished products.

Manufacturers and exporters have expressed concerns that the economy could receive disturbing signals after the formation of a new government and the implementation of new economic policies after Thursday’s (Feb 8) polls.

“Surely, the new government would be responsible for the future direction of the exchange rate because there is a consensus among economists that Pakistan needs another IMF package for the smooth sailing of the economy,” said a senior banker dealing with the currency market.

Bankers believe that the ability of the new government to negotiate with the IMF for more loans would help Pakistan and the PKR remain strong with better performance.

Experts believed that the foreign exchange reserves of the central bank, which are about $8.2bn, would not be enough to meet the debt servicing. Pakistan still lacks about $6bn to cover the $24bn required for debt servicing during the entire FY24.

The country hopes to get a rollover of $2bn from China, which is due to be paid in March. It seems the new government would have to work on a war footing to save the country’s prevailing economic status.

SOURCE: DAWN
 
Rupee dips slightly but largely stable

Although Pakistani currency dipped slightly, it remained largely stable at Rs279.33 against the US dollar in the inter-bank market on Monday as heightened political turmoil in the country following general elections did not leave a large impact on the currency.

According to SBP data, the rupee ticked down 0.02%, or Rs0.03, against the greenback on a day-on-day basis, ending its three-day winning streak. The currency market came under moderate pressure, though the central bank reported improvement in workers’ remittances to $2.4 billion for January 2024. It indicated that the supply of foreign currency remained better in the inter-bank network.

The latest decrease in the SBP’s foreign exchange reserves, however, forced importers to pay a higher price for purchasing the US dollar. The bank reported on Friday evening that the reserves dropped $173 million to $8.04 billion on foreign debt repayments in the week ended on February 2. The currency has cumulatively gained 9.96%, or Rs27.82, in the past five months, reaching a three-and-a-half-month high at Rs279.28.

Exchange Companies Association of Pakistan reported that the currency dropped 0.06%, or Rs0.18, and closed at Rs281.19/$ in the open market. Treasury firm Tresmark projected on Saturday that the rupee would remain stable and may improve to Rs272/$ in the first two weeks post-general elections held on Thursday last week. The emergence of heightened political instability in the aftermath of alleged tampering with election results is likely to prevent the rupee from notching up further gains. Any hung parliament may deal a blow to the economic achievements made over the past few months under the caretaker administration.

SOURCE: https://tribune.com.pk/story/2456254/rupee-dips-slightly-but-largely-stable
 
Rupee disparity grows amid political turmoil

The disparity in the value of the rupee between interbank and open markets widened to over Rs2 on Tuesday, compared to around Rs1.50 previously, signalling a potential return of currency volatility amid political turmoil.

The spread, however, stands at 0.72% (Rs2.01), remaining well below the International Monetary Fund’s recommended maximum level of 1.25%.

The rupee dropped 0.04%, or Rs0.13, to Rs281.32/$ in the open market on Tuesday, as per data from the Exchange Companies Association of Pakistan|. This decline is attributed to an uptick in demand for the greenback, notably for Hajj and Umrah.

Conversely, in the interbank market, the currency remained stable at Rs279.31/$, up by 0.01% or Rs0.02 day-to-day, according to the SBP data. Previously, the disparity had widened to over Rs30-40 between the markets, causing significant volatility. However, efforts by the outgoing caretaker government, including crackdowns on currency smuggling, helped narrow the gap.

SOURCE: https://tribune.com.pk/story/2456374/rupee-disparity-grows-amid-political-turmoil
 
Rupee dips again amid supply concerns

The Pakistani currency dropped to Rs281.77 against the US dollar in the open market on Friday, maintaining a downturn for the fifth consecutive working day, potentially leading to further depreciation in the major interbank market.

According to the Exchange Companies Association of Pakistan (ECAP), the currency decreased by 0.06% or Rs0.17 on a day-to-day basis in the retail market.

Cumulatively, it has lost 0.27% or Rs0.67 in the past five days. Currency dealers in the open market attribute this downturn to a reduction in the supply of foreign currency. With fewer individuals coming forward to sell foreign currencies there are concerns of volatility in the local currency.

However, the interbank market has defied this declining trend, with the currency remaining largely stable at Rs279.32 against the greenback, showing an increase of Rs0.02 on a day-to-day basis.

The recent uptick in the forex reserves and improvements in export earnings suggest that the supply of foreign currency has remained higher than the prevailing stable demand, supporting the rupee to maintain an uptrend going forward.

In the past five months, the currency has gained almost 10% or Rs27.78 in the interbank market. The downturn in the open market and the upturn in the interbank market have widened the disparity in the value of the rupee between the two markets to Rs2.45 (0.87%).

tribune.com.pk

Rupee dips again amid supply concerns | The Express Tribune

Falls to Rs281.77/$ in fifth consecutive drop
tribune.com.pk tribune.com.pk
 
Mention one field of Pakistan where there is no decline.

------------------------

Rupee surpasses Rs282/$

The Pakistani currency declined further, surpassing Rs282 against the US dollar in the open market on Monday. This marks the seventh consecutive working day of losses, driven by increased demand for the greenback amidst heightened political uncertainty in the country.

According to the Exchange Companies Association of Pakistan, the currency dropped by 0.08%, or Rs0.23, on a day-to-day basis in the market. According to SBP data, the domestic currency held steady at Rs279.32/$ in the interbank market on Monday. The contrasting trends in the two markets have widened the disparity in the currency’s value to Rs2.84, gradually approaching the IMF recommended maximum limit of 1.25%, equivalent to around Rs4 at current values. The spread stood at around Rs1.50 just a couple of weeks ago.

Speaking to The Express Tribune, ECAP General Secretary, Zafar Paracha said, “The demand for foreign currencies has increased by around 10% compared to pre-election times. People are buying currencies in advance to hedge against speculated further rupee depreciation. Things will normalise soon.”

REER Appreciates

Pakistan’s real effective exchange rate (REER), the value of the local currency compared to a basket of currencies of foreign trading partner countries, “increased to 101.7 in January 2024 from 98.8 in December 2023,” according to SBP.

This trend indicates that imports have become slightly cheaper while exports have become less competitive, presenting a challenging outlook for the balance of trade going forward.

Earlier, SBP maintained REER mostly around 95-96 during 2020-2023.

SOURCE: https://tribune.com.pk/story/2456972/rupee-surpasses-rs282
 
Dollar regains 21 paise

The US dollar appreciated by 21 paise to Rs279.57 against the rupee in the interbank market on Tuesday.

The exchange rate has been stable for over two months with support from the State Bank of Pakistan which restricted imports.

The market perception of the exchange rate is not as positive as it looks. Currency experts believe that the stable exchange rate is an outcome of a SBP’s strategy which provides little space for imports to go up.

However, the rate stability resulted in an improved inflow of export proceeds which kept the interbank market liquid. This also benefits the SBP as it buys dollars from the banks to keep its reserves at a certain level.

The SBP foreign exchange reserves stand slightly above $8bn. The Fitch Rating agency, however, expressed doubts over the growth of the economy and the exchange rate stability given political uncertainty due to the split mandate in the general elections.

DAWN
 
US dollar inches towards Rs280 against Pakistani Rupee

The US dollar gained 20 paisas value against the Pakistani Rupee and reaches 279.70 in the interbank trading amid the uncertainty over the deal with the international lender IMF for the final tranche.

As per expects the local currency might lose its worth against the mighty US dollar in the coming weeks and months while on the other hand, the State Bank of Pakistan (SBP) does not have enough foreign exchange reserves to cover even two months of import bills for goods.

The local currency to start depreciating the moment market-driven demand for the dollar increases amid the development, according to which, SBP liberalises import payments and outward remittances pick up further pace.

Asian markets climb, Tokyo hits record after US tech gains

Asian markets were mostly up on Thursday, with Tokyo's benchmark index posting a record high, after greater-than-expected earnings from tech giant Nvidia.

Highly anticipated earnings results from US chip titan Nvidia beat expectations late Wednesday, with the firm reporting a quarterly profit of $12.3 billion on record-high revenue driven by demand for its AI-powering chips.

Following a mixed day on Wall Street, the company announced record revenue of $22.1 billion in the quarter that ended late January and $60.9 billion for the fiscal year.

Analysts had predicted its bumper profits could drive up Asian markets, and Japan's blue-chip Nikkei 225 more than delivered. It climbed as much as two percent, or more than 39,000, during afternoon trading on tech share rallies, breaking a record set in 1989.

"As goes Nvidia, so goes the market," Kim Forrest, chief investment officer of Bokeh Capital Partners, told Bloomberg earlier Thursday.

Its earnings report "does confirm the narrative that AI is going to continue to be strong for the foreseeable future. This narrative supported the markets last year, why wouldn't it do the same this year?" Forrest added.

Stephen Innes, of SPI Asset Management, said Asian equities were "poised for a potential rise", supported by Nvidia's gains in after-hours US trading, which saw its shares rise more than eight percent.

The firm's first-quarter outlook exceeded analysts' forecasts, he noted.

Hong Kong and Shanghai stocks were trading higher, as were Seoul, Taipei, Bangkok, Manila and Wellington. Sydney was flat.

London was dragged lower Wednesday by HSBC, after the banking giant's share price plunged more than eight percent on the revelation of a $3-billion impairment on Chinese activities.

Investors were looking to the European Central Bank's minutes of its most recent meeting on eurozone monetary policy, to be released later Thursday, for clues on when it could start cutting rates.

In the United States, January's Federal Reserve policy meeting minutes showed that officials had mixed views over the timing of cutting interest rates -- but most members were more concerned about moving too early.

Traders will "be glossing over the hawkishly skewed details of the US Federal Reserve's January meeting", according to Innes.

"These minutes revealed that policymakers are concerned about the potential risks of cutting interest rates too soon."

SAMAA
 
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