Connect with us

Business

Rupee completes one-month winning streak against US dollar

Published

1 year ago

on

  • Military-backed crackdown helped local currency to gain against dollar.
  • On Sept 5, Pakistani rupee tumbled to 307.10 against the dollar.
  • Rupee expected to strengthen to 280 to the dollar: analyst.

The Pakistan rupee’s winning streak against the US dollar has completed one month today (Thursday) with the local currency gaining 23.50 against the greenback since September 5 in the interbank market — thanks to the military-backed crackdown against currency smugglers.

The local currency is hovering at 283.60 per dollar in the interbank market today, gaining further 1.8 against its counterpart.

On September 5, the Pakistani rupee tumbled to 307.10 against the dollar in the interbank market. Since then, the Pakistani rupee has been on a recovery after the military-backed crackdown launched a crackdown on currency smugglers, hoarders, and speculators.

A day earlier, the rupee closed at 284.68 to the dollar, 0.37% stronger than Tuesday’s close of 285.72.

According to analysts, the rupee kept increasing as a result of a decline in the black market’s demand for dollars.

“In my view, PKR appreciated against the dollar as illegal demand vanished after the crackdown,” said Samiullah Tariq, the head of research at Pak-Kuwait Investment Company.

In the days to come, Tariq thinks that the rupee would strengthen to 280 to the dollar. Mustafa Mustansir, the head of research at Taurus Securities said the main reason for the rise in the value of the rupee is the crackdown on the grey markets and illegal hoarding of dollars.

“Plus, we believe that the illegal flow of dollars to Afghanistan has also stopped,” Mustansir said. “Further, the restructuring of the exchange companies sector by the SBP has also had a significant impact. Overall, these measures have led to heavy selling of dollars in the open market. I think the rally will continue,” he added.

The rupee’s near-term outlook is expected to be positive, but its medium-term future course will be determined by the state of the country’s economic fundamentals, especially the conclusion of the International Monetary Fund’s review of the stand-by arrangement (SBA) and the position of the foreign exchange reserves. In late October or early November 2023, there will likely be an IMF review.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Issues Affecting Pakistan’s Textile Mills Industry: The Government Is Determined To Address Textile Industry Concerns: FM

Published

2 days ago

on

By

Muhammad Aurangzeb, minister of finance, has stated that the government is firmly committed to helping the textile industry in every way possible.
He made this pledge today in Islamabad during a meeting with the All Pakistan Textile Mills Association’s leadership.
In order to guarantee the long-term sustainability and future expansion of Pakistan’s industrial sector, the Minister also reaffirmed the government’s commitment to addressing important tax, energy, and funding challenges.
He welcomed the APTMA office-bearers and gave the delegation his word that the government is committed to resolving the issues facing the textile industry since it understands how important it is to Pakistan’s economy.
Muhammad Aurangzeb underlined that resolving the fundamental issues facing the sector is essential to establishing an atmosphere that is favorable for industrial expansion, promoting economic stability, and bolstering the country’s overall growth trajectory.

Continue Reading

Business

As the MPC meeting draws closer, stocks rise.

Published

2 days ago

on

By

On the final working day of trading, the Pakistan Stock Exchange (PSX) maintained its optimistic trend.

After rising more than 900 points, the benchmark KSE-100 index stabilized around 114,684 points.

The forthcoming Monetary Policy Committee (MPC) meeting on March 10 is allegedly connected to the bullish trend.

Recall that the KSE-100 index gained over 1,400 points on Thursday before closing at 113,713 points.

The greenback, on the other hand, dropped Rs0.07, from Rs279.82 to Rs279.75.

Continue Reading

Business

FBR to Enhance Revenues: Enacts Significant Reforms, Attains Record Revenue Collection

Published

4 days ago

on

By

The Federal Board of Revenue has effectively executed significant reforms in the past year, enhancing tax administration, compliance, and digital transformation under the leadership of Prime Minister Shehbaz Sharif.
The FBR implemented AI-driven risk identification algorithms to improve tax audits and introduced a customer relationship management dashboard for real-time compliance monitoring.
Moreover, AI-driven Customs Intelligence and digital invoicing systems have transformed tax collection and customs operations.
The implementation of faceless customs assessment has markedly diminished clearance waits, optimizing international trade.
The unified sales tax return has streamlined the tax filing procedure, while the continuous advancement of a tier-3 data center seeks to enhance data security and AI-driven surveillance.
To enhance transparency, the FBR digitized its litigation management system for faster dispute resolution.

Continue Reading

Trending