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Rupee snaps three-day losing streak against dollar

Published

2 years ago

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  • Local currency gains Rs1.28 against the dollar. 
  • Paracha says it was a “very good” day for economy.
  • ECAP official expects market sentiment to improve. 

The Pakistani rupee has kickstarted the week on a positive note against the US dollar as exporters encashed large amounts of payments, boosting the market sentiment.

The local currency gained Rs1.28 or 0.46% against the dollar in the interbank market to close at 275.29, according to the State Bank of Pakistan (SBP), up from Friday’s close of 276.58. Meanwhile, the rupee remained stable at 283 in the open market.

During the last week, the rupee plunged to a historic low against the dollar after Prime Minister Shehbaz Sharif said that the International Monetary Fund (IMF) was giving Pakistan “a tough time”.

In a video statement, Exchange Companies Association of Pakistan (ECAP) General Secretary Zafar Paracha said that Monday was “very good” for Pakistan’s economy as the rupee appreciated around 6 in the interbank market during intraday trade.

He said that the rupee’s recovery has started as the exporters, who had earlier stopped their payments, have encashed them. He added that there has been pressure to sell dollars in the interbank market. 

“It is expected that the market’s sentiments will move towards betterment. The sentiments are changing as the people had [earlier] thought that the dollar would reach 300,” said the ECAP’s secretary general. 

He urged the people to sell their dollars for profit-taking. “This would bring stability to our country, our foreign exchange reserves will increase, the rating will improve, the rate of our sukuk bonds will also get better and it will provide ease to the government in holding negotiations with the IMF.”  

Paracha added that the staff-level agreement with the Fund will be signed on February 9. “However, the IMF’s conditions will raise inflation and for that, the government needs to manage its expenses.”

He warned that if the people have to bear the brunt of the taxes, then this could lead to an anarchic situation in the country. He said that the government needs to take steps carefully as the political situation is also unstable. 

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In interbank trade, the Pakistani rupee beats the US dollar.

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6 days ago

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In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

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Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

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1 week ago

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The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.

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Business

The inflation rate in Pakistan dropped to its lowest level.

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1 week ago

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On December 2, core inflation as determined by the Consumer Price Index (CPI) significantly slowed, falling to 4.9% in November 2024 from 7.2 percent in October 2024.

The CPI-based inflation rate for the same month last year (November 2023) was 29.2%, according to PBS data.

Compared to a 1.2% gain in the prior month, it increased by 0.5% month over month in November 2024.

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