BAFL 52.51 Increased By ▲ 2.48 (4.96%)
BIPL 22.80 Increased By ▲ 0.39 (1.74%)
BOP 5.68 Increased By ▲ 0.26 (4.8%)
CNERGY 5.09 Increased By ▲ 0.04 (0.79%)
DFML 19.35 Increased By ▲ 0.17 (0.89%)
DGKC 80.80 Increased By ▲ 0.65 (0.81%)
FABL 33.10 Increased By ▲ 0.25 (0.76%)
FCCL 20.23 Decreased By ▼ -0.02 (-0.1%)
FFL 10.57 Increased By ▲ 0.92 (9.53%)
GGL 13.62 Increased By ▲ 0.02 (0.15%)
HBL 130.17 Increased By ▲ 8.83 (7.28%)
HUBC 122.62 Increased By ▲ 0.12 (0.1%)
HUMNL 8.05 Increased By ▲ 0.05 (0.63%)
KEL 4.45 Increased By ▲ 0.48 (12.09%)
LOTCHEM 27.92 Decreased By ▼ -0.16 (-0.57%)
MLCF 42.70 Increased By ▲ 0.50 (1.18%)
OGDC 125.61 Increased By ▲ 4.28 (3.53%)
PAEL 21.35 Increased By ▲ 1.12 (5.54%)
PIBTL 6.12 Increased By ▲ 0.32 (5.52%)
PIOC 118.00 Increased By ▲ 2.10 (1.81%)
PPL 113.85 Increased By ▲ 3.10 (2.8%)
PRL 31.80 Increased By ▲ 2.22 (7.51%)
SILK 1.10 Increased By ▲ 0.02 (1.85%)
SNGP 69.40 Increased By ▲ 0.37 (0.54%)
SSGC 13.72 Increased By ▲ 0.02 (0.15%)
TELE 9.24 Increased By ▲ 0.49 (5.6%)
TPLP 14.75 Increased By ▲ 0.08 (0.55%)
TRG 92.85 Increased By ▲ 1.55 (1.7%)
UNITY 27.50 Increased By ▲ 0.25 (0.92%)
WTL 1.66 Increased By ▲ 0.03 (1.84%)
BR100 6,815 Increased By 167.1 (2.51%)
BR30 24,245 Increased By 677 (2.87%)
KSE100 66,224 Increased By 1505.6 (2.33%)
KSE30 22,123 Increased By 529.1 (2.45%)

Rupee closes with historic gain over US dollar, ends at 207.23

  • This is the rupee's biggest gain against the US dollar in absolute terms on a day-to-day basis
  • Expectation over inflow from Chinese banks, progress on budget measures with IMF, and falling oil prices help currency's appreciation
Published June 23, 2022

The rupee finally ended its nine-session depreciation run against the US dollar in the inter-bank market on Thursday, gaining over 2.2% as the currency market celebrated the announcement of a loan agreement with Chinese banks as well as progress on budget measures with the International Monetary Fund (IMF).

Oil prices, which form a substantial portion of Pakistan's import bill, also continued to pull back, dropping more than 2% as investors recalibrated assessments of recession risks and fuel demand amid interest rate hikes in major economies.

U.S. West Texas Intermediate (WTI) crude futures had skidded $2.6, or 2.7%, to $103.46 a barrel by 0330 GMT. Brent crude futures slid $2.5, or 2.3%, to $109.22 a barrel.

All three developments contributed to the substantial gain posted by the rupee that had plunged to new lows all throughout the last two weeks.

At close on Thursday, the rupee closed at 207.23 against the US dollar, after an appreciation of 2.27% or Rs4.7, as per the State Bank of Pakistan (SBP). In absolute terms, the gain is the biggest posted by the rupee against the dollar on a day-to-day basis.

Earlier on Wednesday, Minister for Finance and Revenue Miftah Ismail announced that a Chinese consortium of banks signed an RMB 15 billion ($2.3 billion) loan facility agreement. The development was seen as a positive as it would shore up Pakistan's dwindling foreign exchange reserves that dropped below $9 billion last week.

Chinese consortium signs $2.3bn refinancing agreement with Pakistan: Miftah

The minister, in a tweet, said the inflow was expected within a couple of days. “We thank the Chinese government for facilitating this transaction,” he added.

Meanwhile, talking to journalists, Miftah said good news from the IMF was also expected by the end of the current week.

According to sources, Pakistan and the IMF reached an understanding on the federal budget 2022-23, paving the way for the revival of the Extended Fund Facility.

“The sentiments in the market have reversed after Chinese agreement, leading to expectations of inflows in the coming days,” said Abdullah Umer, an analyst at Ismail Iqbal Securities Limited.

“The revival of the IMF programme is in the pipeline as well, which will strengthen the rupee further,” he said.

The analyst added that the market remains in speculation mode, which is reflected in the volatility on a daily basis. “As per Real Effective Exchange Rate (REER), the dollar value is around 200-205. However, with expected inflows, more people will offload their dollars, easing off pressure on the local currency,” he said.

Inter-bank market rates for dollar on Thursday

BID Rs 207.50

OFFER Rs 208

Open-market movement

In the open market, the PKR gained 3 rupees for both buying and selling against USD, closing at 207 and 209, respectively.

Against Euro, the PKR gained 3 rupees for both buying and selling, closing at 217 and 219, respectively.

Against UAE Dirham, the PKR gained 50 paisas for both buying and selling, closing at 56.50 and 57, respectively.

Against Saudi Riyal, the PKR gained 30 paisas for both buying and selling, closing at 55.20 and 55.70, respectively.

Open-market rates for dollar on Thursday

BID Rs 207

OFFER Rs 209

Also read:

Also read:


Comments are closed.

Rupee closes with historic gain over US dollar, ends at 207.23

No signs of stopping: KSE-100 settles above 66k, gains over 1,500 points

Palestinian Authority working with US on postwar plan for Gaza

Inter-bank: rupee sees 9th consecutive gain against US dollar

PML-N demands not power, but accountability: Nawaz Sharif

Open market: rupee edges higher against US dollar

Five terrorists killed in Tank IBO: ISPR

Former finance minister Shaukat Tarin quits PTI, politics

Imran’s statement on Afghan refugees an attempt to gain ‘sympathy of Afghan govt’: info minister

Pakistan issues visa to Indian Hindu pilgrims for visit to Sindh’s Shadani Darbar

ECP issues notice to PTI regarding petitions challenging intra-party polls