BAFL 45.66 Increased By ▲ 0.56 (1.24%)
BIPL 20.08 Decreased By ▼ -0.17 (-0.84%)
BOP 5.34 Decreased By ▼ -0.06 (-1.11%)
CNERGY 4.54 Increased By ▲ 0.01 (0.22%)
DFML 16.01 Increased By ▲ 0.33 (2.1%)
DGKC 78.62 Increased By ▲ 5.74 (7.88%)
FABL 27.80 Increased By ▲ 0.65 (2.39%)
FCCL 18.86 Increased By ▲ 1.21 (6.86%)
FFL 8.96 Decreased By ▼ -0.13 (-1.43%)
GGL 12.85 Increased By ▲ 0.21 (1.66%)
HBL 111.54 Increased By ▲ 0.88 (0.8%)
HUBC 122.23 Increased By ▲ 0.71 (0.58%)
HUMNL 7.69 Increased By ▲ 0.34 (4.63%)
KEL 3.29 Increased By ▲ 0.06 (1.86%)
LOTCHEM 27.80 Increased By ▲ 0.48 (1.76%)
MLCF 42.36 Increased By ▲ 3.03 (7.7%)
OGDC 110.37 Increased By ▲ 2.37 (2.19%)
PAEL 18.97 Increased By ▲ 1.41 (8.03%)
PIBTL 5.46 No Change ▼ 0.00 (0%)
PIOC 114.91 Increased By ▲ 6.91 (6.4%)
PPL 94.72 Increased By ▲ 2.97 (3.24%)
PRL 25.32 Increased By ▲ 0.44 (1.77%)
SILK 1.10 Increased By ▲ 0.02 (1.85%)
SNGP 64.32 Increased By ▲ 1.22 (1.93%)
SSGC 12.26 Increased By ▲ 0.37 (3.11%)
TELE 8.36 Increased By ▲ 0.17 (2.08%)
TPLP 13.35 Increased By ▲ 0.24 (1.83%)
TRG 83.84 Increased By ▲ 2.23 (2.73%)
UNITY 25.89 Increased By ▲ 0.14 (0.54%)
WTL 1.54 Increased By ▲ 0.02 (1.32%)
BR100 6,308 Increased By 126.6 (2.05%)
BR30 21,973 Increased By 434.1 (2.02%)
KSE100 61,691 Increased By 1160 (1.92%)
KSE30 20,555 Increased By 366.1 (1.81%)

After a 16-session losing streak, rupee gains in spectacular fashion

  • Closes at 199.76 against the US dollar after 1.13% gain on Friday
  • Currency's gain comes on back of positive market sentiment after govt jacked up fuel prices and moved a step closer to reviving IMF programme
Published May 27, 2022

The rupee snapped its lengthy 16-session depreciation run on Friday, strengthening 1.13% against the US dollar to close at 199.76 in the inter-bank market. The gain comes after a surprise overnight hike in the prices of petroleum products rekindled hope of revival of the International Monetary Fund (IMF) programme.

As per the State Bank of Pakistan (SBP), the currency closed at 199.76 after a day-on-day appreciation of Rs2.25 or 1.13%. During intra-day trading, the local currency recovered to as high as 198 against the greenback.

On Thursday, the local currency closed at 202.01, after a day-on-day depreciation of 9 paisas or 0.04%. This was the rupee's weakest closing level in history. Cumulatively, during its 16-session losing streak, the Pakistani currency lost over 8%.

Late on Thursday, the government raised the price of petrol and diesel by Rs30 per litre each to fulfil a key condition of the IMF for the release of the next tranche of $900 million. The hike in prices signalled a clearer economic policy on part of the government that had remained reluctant to remove energy subsidies announced by the previous government led by Pakistan Tehreek-e-Insaf (PTI).

POL products’ prices hiked by Rs30 per litre

While Finance Minister Miftah Ismail acknowledged that the move would contribute to inflation to some extent, he stressed that the government had no choice as it had already provided a Rs56-per-litre subsidy on diesel.

Speaking to Business Recorder, Arif Habib Limited Head of Research Tahir Abbas said increase in the rates of petroleum products is a clear indication that Pakistan has decided to make all-out efforts to resume the stalled IMF programme.

"The country looks ready to take tough measures to support the economy hence economic indicators are improving,” he said.

Against USD: Rupee recovers from intra-day low, closes marginally weaker at 202.01

Moreover, the element of uncertainty has subsided and there is clarity in the market, he added.

Meanwhile, foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased $75 million in the period between May 13 to May 20 to stand at $10.09 billion, with the level staying at less than 1.5 months of import cover.

SBP's reserves fall another $75mn, now stand at $10.09bn

On the international front, the US dollar also sank to a one-month low versus major peers on Friday as traders lowered Federal Reserve rate hike expectations amid signs the central bank might slow or even pause its tightening cycle in the second half of the year.

Versus major peers: Dollar sinks to one-month low amid easing Fed rate hike bets

The dollar index , which measures the greenback against a basket of six major peers, fell as low as 101.43 for the first time since April 25. A rally in Asian stocks also sapped demand for the greenback as a haven.

Inter-bank market rates for dollar on Friday

BID Rs 199.20

OFFER Rs 199.40

Open-market movement

In the open market, the PKR gained 3.25 rupees for buying and 2.50 rupees for selling against USD, closing at 199 and 201, respectively.

Against Euro, the PKR gained one rupee for both buying and selling, closing at 213 and 215, respectively.

Against UAE Dirham, the PKR gained 80 paisas for both buying and selling, closing at 54.20 and 54.70, respectively.

Against Saudi Riyal, the PKR gained 70 paisas for both buying and selling, closing at 52.50 and 53, respectively.

Open-market rates for dollar on Friday

BID Rs 199

OFFER Rs 201


Comments are closed.

Aziz Ur Rahman May 27, 2022 03:22pm
A very good omen for the future
thumb_up Recommended (0)
s ahmed May 28, 2022 03:38am
How is a 1% reduction in value 'SPECTACULAR'? Please be sensible about reporting! Do not tow the fake Govt line - the govt who have destroyed the economy in record time!!!
thumb_up Recommended (0)

After a 16-session losing streak, rupee gains in spectacular fashion

PSO allowed Rs3.21 per litre exchange rate adjustment

Only photovoltaic cells exempted from sales tax: FBR

Climate plans: Over 130 nations agree to include food, agriculture

DPC proposes ‘appropriate’ changes in statute

Govt reaffirms its commitment to protect CPEC projects, workers

UN conventions bind Pakistan to protect rights of refugees: SC

Transport for visiting ministers: Embassy in UAE seeks more funds

Federal govt employees: Guidelines issued for grant of compensatory allowance

Roosevelt Hotel sell-off: PC Board approves appointment of FA

‘Green channel facility’: 57pc of imported consignments cleared at ports