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Rupee snaps 13-day winning streak against dollar

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2 years ago

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  • Rupee closes at Rs217.88 against US dollar.
  • Drop in inflows changed sentiment in interbank makret.
  • Analyst says next direction could be news driven — good or bad.

KARACHI: Pakistan’s currency depreciated 0.04 % (or Rs0.10) to Rs217.88 against the US dollar in the interbank market on Wednesday, ending its appreciation streak that continued for 13 consecutive working days.

The local currency had closed near a one-and-a-half-month high at Rs217.79 on Tuesday, according to the central bank.

It regained a cumulative 10.01% (or Rs21.92) in the past 13 successive working days till Tuesday, dropping close to the all-time low of Rs239.94 last month.

The currency on Wednesday recorded its first depreciation in the past two weeks after worker remittances slowed down 12.3% year-on-year to $2.4 billion and export earnings in September.

The drop in inflows changed sentiment in the interbank market and encouraged importers to buy dollars at the prevailing rate before it became expensive.

Earlier, the rupee emerged as the best-performing currency in the world last week after it notched up one of the largest gains of 3.9% in the week ended October 7 compared to all other currencies on the Bloomberg terminal.

The excessive supply of dollars in the market helped the rupee to stage a 13-day-long rally. However, the supply of foreign currency decelerated after the sluggish data on worker remittances.

Economic analyst Ali Khizar noted that the appreciation trend of the local unit is “arrested” as it closed within a range of 217.8-218 in the last three working days.

“In this week, the inflows in the form of exporters selling in forward and incremental remittances have declined significantly,” he wrote on Twitter, adding that the next direction could be news driven — good or bad.

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Business

Trade ties between Pak-Oman: Both nations decide to activate “Joint Business Council”.

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21 hours ago

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Jam Kamal Khan, federal minister for commerce, visited Oman Chamber of Commerce and Industry in Muscat alongside chairman Faisal Abdullah Al Rawas.

To enable closer economic collaboration, both sides decided during the meeting to activate joint Business Council between OCCI and the federation of Pakistan Chambers of Commerce and industry.

Concurrent with the conference, the Embassy of Pakistan arranged a b2b networking event in association with OCCI to gather Omani Businessmen and Pakistani Business Delegates investigating trade prospects.

Speaking on the occasion, Jam Kamal Khan said, “Our present trade figures do not fairly represent the depth of our connection. We can quickly raise the current Trade volume to two or three times its present level by just eliminating logistical and communication barriers.

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Business

Despite economic gains, PSX remains strong.

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21 hours ago

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Amidst the ongoing negotiations with the International Monetary Fund (IMF) regarding a loan tranche, the Pakistan Stock Exchange (PSX) has resumed its upward trajectory in recent days.

The KSE-100 Index gained 600 points on Friday, the penultimate working day of the business week, and then increased to 115,730 points as traders showed confidence and engaged in trading.

After experiencing fluctuations, the PSX gained strength on Thursday, as the major index surpassed 115,000 points.

The KSE 100-Index closed at 115,094.23 points after gaining 1,009.70 points, or 0.89 percent. 115,247.39 was the intraday high, and 14,429.93 was the lowest.

According to experts, one important factor is Moody’s Ratings’ upgrade of Pakistani banks. Investor confidence has also increased due to the expectation of a positive conclusion from the negotiations with the International Monetary Fund (IMF).

In its assessment, Moody’s stated, “We have shifted our outlook on Pakistan’s banking system from stable to positive to reflect the banks’ resilient financial performance as well as improving macroeconomic conditions from very weak levels a year ago.”

The major index of the Pakistan Stock Exchange (PSX) surpassed 115,000 on Thursday, indicating a surge in the market.

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Pakistan resolves to meet benchmarks, and the IMF promises economic help.

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21 hours ago

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In the midst of an ongoing economic review, the delegation from the International Monetary Fund (IMF) has promised Pakistan economic cooperation.

In order to assess the delivery of a $1 billion tranche under the $7 billion rescue deal, IMF officials are now in Pakistan.

Today, March 14, marks the completion of the two-week-long economic review and negotiations between the global lender’s representatives and Pakistani authorities.

The team met with Finance Minister Muhammad Aurangzeb at the Ministry of Finance for the last round of negotiations.

The nation’s economic team’s actions and performance were praised by the visiting officials.

Aurangzeb promised the IMF during the conference that all economic goals would be met. He said that as long as the loan program is in place, no goals would be broken.

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