AVN 65.31 Decreased By ▼ -0.86 (-1.3%)
BAFL 30.25 No Change ▼ 0.00 (0%)
BOP 4.63 Decreased By ▼ -0.10 (-2.11%)
CNERGY 3.89 Decreased By ▼ -0.12 (-2.99%)
DFML 13.50 Decreased By ▼ -0.60 (-4.26%)
DGKC 42.15 Decreased By ▼ -1.54 (-3.52%)
EPCL 46.13 Increased By ▲ 1.48 (3.31%)
FCCL 11.45 Decreased By ▼ -0.38 (-3.21%)
FFL 5.19 Increased By ▲ 0.22 (4.43%)
FLYNG 5.82 Decreased By ▼ -0.28 (-4.59%)
GGL 10.04 Decreased By ▼ -0.34 (-3.28%)
HUBC 63.21 Increased By ▲ 0.91 (1.46%)
HUMNL 5.73 Decreased By ▼ -0.12 (-2.05%)
KAPCO 27.81 Increased By ▲ 0.26 (0.94%)
KEL 2.15 Decreased By ▼ -0.06 (-2.71%)
LOTCHEM 25.37 Decreased By ▼ -1.23 (-4.62%)
MLCF 21.65 Decreased By ▼ -0.87 (-3.86%)
NETSOL 84.95 Decreased By ▼ -1.25 (-1.45%)
OGDC 86.64 Increased By ▲ 0.37 (0.43%)
PAEL 10.96 Decreased By ▼ -0.31 (-2.75%)
PIBTL 4.21 Decreased By ▼ -0.07 (-1.64%)
PPL 78.65 Decreased By ▼ -1.43 (-1.79%)
PRL 13.61 Decreased By ▼ -0.05 (-0.37%)
SILK 0.88 Decreased By ▼ -0.02 (-2.22%)
SNGP 41.00 Decreased By ▼ -0.75 (-1.8%)
TELE 6.01 Decreased By ▼ -0.20 (-3.22%)
TPLP 16.02 Decreased By ▼ -0.25 (-1.54%)
TRG 111.89 Decreased By ▼ -0.66 (-0.59%)
UNITY 14.01 Decreased By ▼ -0.34 (-2.37%)
WTL 1.14 Decreased By ▼ -0.06 (-5%)
BR100 4,026 Decreased By -48.6 (-1.19%)
BR30 14,402 Decreased By -123 (-0.85%)
KSE100 40,451 Decreased By -396 (-0.97%)
KSE30 15,110 Decreased By -101.7 (-0.67%)
Markets

Sentiment-driven: Pakistan's rupee closes with considerable gain against US dollar

  • Registers 1.1% appreciation on Monday, settles at 237.02 in inter-bank market
Published September 26, 2022
Follow us

Pakistan's rupee made giant strides against the US dollar on Monday, closing 1.1% higher in the inter-bank market as it factored in the return of former finance minister Ishaq Dar, an advocate of a strong currency.

As per the State Bank of Pakistan (SBP), the rupee closed at 237.02 after appreciating R2.63 or 1.11%.

In the previous week, the rupee had fared relatively better after the US Federal Reserve announced raising the key interest rate with the local currency ending 1.2% lower against the US dollar.

The rupee lost value in four of the five sessions, inching precariously close to its all-time low in the inter-bank market, before finally ending a 15-session losing streak to settle at 239.65 on Friday.

Positive momentum was carried over on Monday, but it was much stronger on the back of the key political development.

Federal Minister for Finance and Revenue Miftah Ismail on Sunday announced he will tender his formal resignation, saying that he had verbally resigned in a party meeting held in London. Senior PML-N leader Dar is reported to replace Miftah as the new finance minister.

Miftah quits; Dar to take over as finance minister

During his tenure, Ismail took a number of unpopular decisions to comply with the International Monetary Fund (IMF) preconditions, including rolling back power and fuel subsidies given by the previous government.

Dar is widely seen as an advocate of a stronger rupee, and his elevation as finance minister tends to make markets bullish on the local currency, say experts.

“The improvement in rupee is mostly sentiment based, as economic fundamentals do not support the recovery,” said Abdullah Umer, an analyst at Ismail Iqbal Securities Limited, told Business Recorder.

The analyst said the dollar continues to gain against other currencies in the international market. “Reports pertaining to rescheduling of loans from international creditors including the Paris Club is driving the positive sentiment as well,” he said.

"However, the economy remains under a shadow, and authorities should take measures to curb the outflow of dollars, especially through smuggling in Afghanistan," Umer added.

Moreover, in another important development, the country’s central bank on Friday in order to further strengthen the regulatory regime for Exchange Companies (ECs) and promote the usage of banking channels, restricted ECs for cash sale transactions of $2000 and above.

As per the SBP’s new directives, ECs are now required to conduct all foreign currency sale transactions of $2,000 or above against PKRs through banking channels.

Meanwhile, internationally, the dollar maintained its strong grip against other currencies. The dollar index - whose basket includes sterling, the euro and the yen - reached 114.58 for the first time since May 2002 before easing to 113.73, 0.52% higher than the end of last week.

Oil prices, a key indicator of currency parity, fell for a second day on Monday on fears of lower fuel demand from an expected global recession sparked by rising worldwide interest rates and as a surging US dollar limits the ability of non-dollar consumers to purchase crude.

Inter-bank market rates for dollar on Monday

BID Rs 235.75

OFFER Rs 236.50

Open-market movement

In the open market, the PKR gained 6.50 rupees for buying and 6.90 rupees for selling against USD, closing at 235.50 and 237.50, respectively.

Against Euro, the PKR gained 6 rupees for buying and 6.05 rupees for selling, closing at 229 and 231.30 respectively.

Against UAE Dirham, the PKR gained 1.90 rupees for buying and 2.05 rupees for selling, closing at 64 and 64.50, respectively.

Against Saudi Riyal, the PKR gained 2.05 rupees for buying and 2.10 rupees for selling, closing at 62.20 and 62.80, respectively.

Open-market rates for dollar on Monday

BID Rs 235.50

OFFER Rs 237.50

Comments

Comments are closed.

samir sardana Sep 27, 2022 12:21am
AS I SAID ON "https://www.brecorder.com/news/40199200/15-session-losing-streak-ends-pakistans-rupee-appreciates-marginally" "PKR WILL START A SECULAR RISE . COMMODITIES ARE EXPECTING RECESSION & THAT BENEFITS PAKISTAN ! IT IS NOT THE IMPORT BILL PER SE" PKR JUMPED BY 1.5% IN 1 DAY ! THE BILL RUN HAS BEGUN.NASDAQ HAS TURNED. USD INDEX WILL ALSO FALL NOW , FROM TOMORROW. THE PKR IS NOW DECOUPLED FROM USD INDEX, AS IT WAS SEVERELY DENTED BY OIL & GAS & USD. THE CRASH IN COMMODITIES WILL MUCH MORE THAN OFFSET THE USD INDEX FOR PKR US FED IS AT WAR WITH PUTIN,& NOT INFLATION ! IT WILL PUSH THE WORLD INTO DEPRESSION TO KILL RUSSIA ! IT IS WORTH IT,AS WITH RUSSIA OUT - MILITARY SPENDING IN NATO WILL CRASH & CHINA WILL BE AMBUSHED BY NATO & GIVE IN & US WILL BE A SOLE SUPERPOWER. ZELINSKY & UJKRAINE IS THE GOLDEN TICKET FOR US TO BLEED,BANKRUPT,PARTITION & INSURRECT RUSSIA & DEPOSE PUTIN.dindooohindoo ONCE USD INDEX GOES DOWN OR STAGNATES - WE WILL SEE 2-3% MOVES IN PKR IN A DAY
thumb_up Recommended (0)

Sentiment-driven: Pakistan's rupee closes with considerable gain against US dollar

SBP rebuts claim capping dollar price caused $3bn loss in remittances, exports

At least 41 killed as passenger coach falls into ravine in Lasbela

6.3 magnitude earthquake jolts Islamabad, surrounding areas

Ten children killed in northwest Pakistan boat capsize

China’s 2022 smartphone shipments the lowest in 10 years

Blinken arrives in Egypt as Middle East violence erupts

Djokovic wins Australian Open to equal Nadal’s 22 Slam titles

Pakistan expresses interest in possibility of currency swap with Russia

Suddenly, ailing SOEs come under PDM govt’s focus

50pc duty imposed on import of ‘Mild Hybrid Vehicles’