• Saturday, July 20, 2019

Rupee weakens to 142.7 against dollar in open market

Discussion in 'Pakistan Economy' started by ni8mare, May 11, 2019.

  1. ni8mare

    ni8mare SENIOR MEMBER

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    KARACHI:The Pakistani currency suddenly weakened over one-rupee to Rs142.7
    to the US dollar in the open market on Friday as speculation mounted that Pakistan had agreed to let the rupee depreciate further under a stringent International Monetary Fund (IMF) bailout programme.
    “There is speculation the rupee will depreciate to 165-170 against the US dollar in the inter-bank market as per IMF’s conditions,” Exchange Companies Association of Pakistan (ECAP) Secretary General Zafar Paracha said while talking to The Express Tribune.

    During the day, the rupee remained stable at 141.39 to the greenback in the inter-bank market, the State Bank of Pakistan (SBP) reported.
    Further rupee fall, interest rate hike expected

    Pakistan Forex Association President Malik Bostan said “market talk suggests Pakistan and the IMF have agreed to let the rupee fall to a certain level. However, there is no official word on the likely development.”
    Topline Research reported a couple of days ago that there were chances that the rupee would weaken 13-17% to 160-165 to the greenback by December 2019.
    The speculation has led people in need of dollars to buy the US currency before it appreciates further. “Pilgrims who are about to perform Umrah or going for Haj later seem to be major buyers of the foreign currency these days,” Paracha said.
    With the latest drop of Rs1.1 on Friday, the rupee weakened by a total of 1.3 against the dollar in the open market in the past four days, according to forex.pk.
    Earlier, the central bank let the rupee depreciate a massive 34% since December 2017 to date in a bid to boost sluggish exports and drastically cut imports to narrow down the current account deficit and improve balance of payments situation.
    CPEC’s first power project mired in financial difficulties

    Bostan added that the demand and supply of dollar remained stable, but there was a jump in the demand for Saudi riyal.
    About 1.4-1.5 million Pakistani pilgrims are expected to perform Umrah and Haj this year compared to 1.2 million last year. This has created additional demand for riyals and dollars.
    “Riyals used to be in surplus to the tune of 7-8 million a day till the recent past, but the Umrah and Haj season has created additional demand equivalent to the surplus,” Bostan said.
    He said the open market exchanged foreign currencies worth $7-8 million a day. This includes 50% trading in dollar and 50% in other foreign currencies.
    “The flow of foreign currencies has remained stable in the open market these days as overseas Pakistanis are visiting the country to spend annual vacations with their families during Ramazan and are approaching exchange counters to exchange currency,” he said.
    “The month of Ramazan witnesses around 20% growth in the receipt of remittances through exchange companies every year as overseas Pakistanis remit higher amounts to their families to help them meet higher Ramazan and Eid expenditures,” he said.

    Gold rises Rs1,200 per tola
    The All Sindh Saraf and Jewellers Association announced on Friday an increase of Rs1,200 per tola (11.66 grammes) in the price of gold that stood at Rs69,200.
    The increase in the gold price came in the wake of rupee depreciation in the open market, an office-bearer of the association stated.
    The price will remain valid for day-to-day trade till 4:30pm on Saturday nationwide as the association announces a new price for the next 24 hours every day, except for Sundays.
    In the international market, the gold price inched up just $1 to $1,284 per ounce (31.10 grammes), the association reported.
     
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  2. ejaz007

    ejaz007 SENIOR MEMBER

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    New target rate of 165 PKR to 1 USD
     
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  3. Chakar The Great

    Chakar The Great SENIOR MEMBER

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    Good to see Indians back on the forum. The obsession with Pakistan continues. They are usually seen on economy related issues.
     
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  4. lightoftruth

    lightoftruth SENIOR MEMBER

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    Can touch 200 by year end.

    It will be a stage by stage depreciation.
     
  5. The Accountant

    The Accountant SENIOR MEMBER

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    and the basis of your revelation?
     
  6. lightoftruth

    lightoftruth SENIOR MEMBER

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    Appreciation of dollar because of US policies.

    IMF making sure that your currency (pkr) is pegged at dollar,with every 3 month evaluation.

    Tough times ahead for Pakistan.
     
  7. FOOLS_NIGHTMARE

    FOOLS_NIGHTMARE BANNED

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    Pity state of affairs even their buddies in media beating the drums.
     
  8. The Accountant

    The Accountant SENIOR MEMBER

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    I m asking from where u got this 200 rupee figure ?
     
  9. pahadi

    pahadi BANNED

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    @BHarwana you keep an account of paisa wise drop of Indian rupee, why dont you keep an account of PKR? seems legit to me, its an avalanche ....:agree:
    Now if PKR somehow reaches to 165 will it not be helpful in stopping the imports? Like this will pump up the local companies to come up with alternatives, isn't it good? o_O
     
  10. lightoftruth

    lightoftruth SENIOR MEMBER

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    200 is a conservative estimate.

    first 3 months it will go to 165 further evaluation will stretch it to 200.
     
  11. maithil

    maithil BANNED

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    IMF is probably requesting another 20% depreciation. Will take dollar to 165+. Good time to become tomato exporter.
     
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  12. Śakra

    Śakra SENIOR MEMBER

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    Yes, instead of exporting X for Y amount you can export X+30% for Y amount!!!!
     
  13. DeadSparrow

    DeadSparrow FULL MEMBER

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    Remember Imran Khan came to power criticising IMF and dollar devaluation. And he's doing a far worse job than previous government.

    It's like if someone is constantly stealing from your home and you hire someone to take care of that but he even manages to physically steal your house with a crane or something. That's Imran Khan.

    But PTI supporters are so beigherat that they will defend IK just because Kaptaan bara handsome hai
     
  14. The Accountant

    The Accountant SENIOR MEMBER

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    And since when u became an economic expert and can equate rupee depreciation equivallent to stealong ? Do u even know how the rupee valuation works and what are the impacts and causes of appreciation and depriciation of rupee ?
     
  15. Enigma SIG

    Enigma SIG FULL MEMBER

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    Can't weaken if it was overvalued anyway.