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Rupee slides further to Rs150 against USD; stock market down 2.4pc in intra-day trade

ni8mare

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Apr 19, 2013
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Rupee slides further to Rs150 against USD; stock market down 2.4pc in intra-day trade
ReutersMay 17, 2019

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The stock market declined on Friday, with the benchmark KSE-100 index down 2.4pc by 11:15am. — AFP/File

The rupee continued to fall to record lows on Friday, after the government agreed in principle to a $6 billion loan from the International Monetary Fund (IMF).

The rupee, which lost 3.6 per cent on Thursday to close at 146.2 against the US dollar in the interbank market, dropped further on Friday, dealers said, selling at Rs149.50 in the interbank market and Rs150 in the open market.

The fall reflects the IMF's condition for a “market-based exchange rate mechanism, which will see limited intervention by the central bank now,” said Saad Hashmi, chief economist and research director at Topline Securities in Karachi.

The stock market also declined on Friday, with the benchmark KSE-100 index down 2.4pc by 11:15am.

While the exact conditions of a final IMF deal are still unknown, Sunday's Staff-Level accord, which must still be approved by the Fund's board in Washington, said a “market-determined” exchange rate would help the financial sector.

That pointed to less support from the State Bank of Pakistan, which at present underpins the rupee in a de facto managed float system.

Late on Thursday, the SBP issued a statement saying the sharp fall in the rupee “reflects demand and supply conditions in the foreign exchange market” and would help in correcting market imbalances.

However, the drop presents a political problem for the government, which came to power last year promising to build a new social welfare system and vowing not to seek what would be Pakistan's 13th bailout since the 1980s.

With the economy facing a sharp slowdown in growth, the government is expected to have to raise taxes or impose heavy spending cuts to reduce its ballooning budget deficit at a time when household budgets are increasingly squeezed.

While many analysts see the rupee as overvalued and say the SBP has wasted billions defending it, a weaker currency is likely to fuel inflation, which is already over 8pc, with power and fuel prices hit especially hard.

Hashmi noted market talk that oil imports were already facing payment pressure.

The SBP, which is due to announce its latest interest rate decision on Monday, said late on Thursday that its foreign exchange reserves fell $138 million in the week ending May 10 to $8.846 billion, less than needed to cover three months of imports.
 

El Sidd

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Apr 5, 2017
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Thats just propaganda !!

The rich are getting rich by the second in Pakistan. There is no urgency nor any crisis regarding economy or trade or debt.
 

Viny

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Jul 29, 2014
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Looks like USD is turning out Bitcoin type investment for people.
Put 100 today get 105 tomorrow and then 110 day after tomorrow.
This is going to harm the economy at large in big way. People for there short term gains are putting economy at risk at large.

WTF is going on man
People investing USD, so that there asset value doesnt depreciate with falling PKR.
Kind of if you keep your 100PKR and dont buy USD then tomorrow the purchasing power of this 100 might became same as that of 80PKR. So people are trying to cut down the loss of purchasing power value of there liquid assets.
 

313ghazi

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Mar 14, 2017
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On the bright side my Eid shopping was much cheaper. Cost a lot less in pounds to buy the wife's Eid clothes, get them stitched and posted to the UK than last year.

Loads of expats are sending money home too, the exchange rate is excellent.
 

Invictus.inc

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Patriotic Pakis Selling their Country for a few gains that's what's happening :)
It aint Imrans fault
Nawaz+Zardari has looted this country to the point that even the best of the economists cant save us
Bolna tab tha jab ye dono loot rhy thy
Ab tabdeeli tabdeeli na karo
Sit your Asses down & reap what you sow
 

Pubg1

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Apr 12, 2019
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Nawaz shariff was a good administrator. He gave Pakistan -
1. Good motorways which they are proud of.
2. At start of his term, the power supply was abysmal but now the condition is vastly improved.
3. The railways are again chugging.
4. Kept the rupee in control. For comparison the BD takka is at 83 to the usd.

Only problem was he wanted to have good relations with India. And that is not acceptable to a certain section who will lose their perks in case of a friendly relationship with the arch enemy.

DON'T BAN ME.
 

blueazure

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to all the indians jerking off over devalued PKR, please worry about INR . it aint doing that great either against the dollar..

however, the RBI has gold in its vaults, our state bank doesn't ,,
 

Dem!god

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Jan 14, 2014
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Pakistani rupee will slide to 200+ per dollar in the next 12 months... It's bound to happen, inflation will be high, growth will be restricted (atleast for short term ) and ppl will suffer. Pakistan brought this to themselves.
It's going to be difficult time for Pakistan for next 5-10 year. If they do not work on their micro and marco economics, they will keep suffering. Better start working to increase exports and lessen the imports.
 

Novice09

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Oct 20, 2009
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@BHarwana very bad very sad☹
1 INR = 2.13 Pkr

Even Karachi 100 lost 4500 points in last 1 month..
Very bad,very Sad.

Bro... he is sad because of India's happiness... and happy with India's sadness...

Tell him INR to USD or melting of Indian share market... if want a reply...

VERY BAD VERY SAD...
Hey @BHarwana here is your gift for today

Screenshot_20190517-154945_TOI.jpg


Nawaz shariff was a good administrator. He gave Pakistan -
1. Good motorways which they are proud of.
2. At start of his term, the power supply was abysmal but now the condition is vastly improved.
3. The railways are again chugging.
4. Kept the rupee in control. For comparison the BD takka is at 83 to the usd.

Only problem was he wanted to have good relations with India. And that is not acceptable to a certain section who will lose their perks in case of a friendly relationship with the arch enemy.

DON'T BAN ME.

You must be JINDAL... GADDAR KA YAAR...
 

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