• Thursday, August 16, 2018

US dollar reaches record high of Rs121 in interbank market

Discussion in 'Pakistan Economy' started by FalconsForPeace, Jun 11, 2018.

  1. FalconsForPeace

    FalconsForPeace SENIOR MEMBER

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    [​IMG]

    The US dollar hit a record high of Rs121 in interbank trading on Monday morning, reported Geo News.

    The greenback, which was previously standing at Rs115.63, rose by Rs5.38, according to foreign exchange dealers.

    Increasing imports and a widening current account deficit were cited as the possible reasons for the hike in the value of the foreign currency.

    Earlier this year in March, the US dollar had shot up by Rs4.93 in the interbank market to hit a high of Rs115.50 before coming down to Rs115 at the close of business.

    The currency had shot up to its record-high in the interbank had also peaked to Rs116 in the open market.

    The value of the Pakistani Rupee had noted a four per cent decrease in the interbank market as a result of the dollar rise.

    https://www.geo.tv/latest/198809-us-dollar-reaches-record-high-of-rs121-in-interbank-market
     
  2. SunilM

    SunilM FULL MEMBER

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    Pakistan Is Said to Devalue Rupee for Third Time Since December

    By
    Faseeh Mangi
    June 11, 2018, 10:54 AM GMT+5:30

    • Rupee dropped as much as 5.1% a dollar in interbank: people

    • Nation’s currency worst performer in Asia since December
    Pakistan’s central bank devalued the currency for a thirdtime since December amid mounting economic pressure and speculation that the country may need International Monetary Fund support.



    The rupee dropped as much as 5.1 percent to 121.5 a dollar in trade today, according to bank foreign-exchange traders who asked not to be identified since they are not authorized to speak to the media. The central bank could not be immediately reached for a comment.



    The move comes after Pakistan’s foreign exchange reserves dropped to the lowest in more than three years and the current account deficit widened by 50 percent. The nation’s currency is the worst performer in Asia since December before today’s drop, according to data compiled by Bloomberg.



    Pakistan appointed Nasir ul Mulk, a former chief justice, as Pakistan’s caretaker prime minister this month with a mandate of running the government until a new administration is elected in a nationwide poll next month

    https://www.bloomberg.com/news/arti...?utm_source=google&utm_medium=bd&cmpId=google
     
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  3. Samlee

    Samlee SENIOR MEMBER

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    It Would Not Have Been So Painful Today If This Devaluation Had Taken Place Long Ago
     
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  4. SOUTHie

    SOUTHie SENIOR MEMBER

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    Good for exports and overseas Pakistanis.
     
  5. Samlee

    Samlee SENIOR MEMBER

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    Are Sunil Bhai Bari Lambi Umar Hai Aapki:lol::lol::lol:


    Indian rupee worst hit among Asian currencies this year, check out others
    Moody’s Investors Service’s external vulnerability index, which is the ratio of short-term debt, maturing long-term debt and non-resident deposits over one year calculated as a proportion of reserves, puts Indonesia at 51 percent and India at 74 percent.


    [​IMG]

    It’s no surprise that India and Indonesia are among the worst-hit Asian currencies this year when you look at their foreign debt exposure and the level of reserves they have to cover that. Moody’s Investors Service’s external vulnerability index — which is the ratio of short-term debt, maturing long-term debt and non-resident deposits over one year calculated as a proportion of reserves — puts Indonesia at 51 percent and India at 74 percent.

    Malaysia and the Philippines are the odd ones out: the ringgit has gained this year even though Malaysia is among the most debt risky in Asia, while the Philippines has low foreign exposure but a currency that’s the second worst-performer in Asia, down almost 5 percent against the dollar.

    Tighter global financial conditions is making it more expensive to refinance foreign debt and adds to pressure on currencies. In some countries, including Indonesia and the Philippines, yields have risen, Moody’s said. However, the extent of depreciation and more generally, tightening in financing conditions, is nowhere similar in magnitude compared with the taper tantrum in 2013, it said

    https://www.financialexpress.com/ec...urrencies-this-year-check-out-others/1184861/
     
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  6. SunilM

    SunilM FULL MEMBER

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    PKR should touch 125-130 by July end. Its clear that the way is being cleared to approach the IMF. Also oil price hike of RS 10 was due, Imagine the hike now after this devaluation. The more the care taker govt dithers from increasing the price, the more the fiscal deficit increases and more the pressure increases on the currency. Some very bad news lies in store for the aam awaam in the not so distant future.
     
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  7. GodToons

    GodToons FULL MEMBER

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    Simple question, just to benefit of some $200-250M, why any country is increasing value of Billion of dollars of debts along with $10B imports. Devaluation is bad decision unless it is backed by solid manufacturing/ services.
     
  8. Samlee

    Samlee SENIOR MEMBER

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    http://www.tribuneindia.com/news/comment/birth-pangs-of-a-new-asian-order/603225.html
     
  9. indianfighter1999

    indianfighter1999 BANNED

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    pakistan must be planning to go for imf bailout as rupee devaluation was one of the main criterias as rupee devaluation makes dollar loans much more valuable and also decreases the un necessary dollar outflow to keep currency value stable.
     
  10. SunilM

    SunilM FULL MEMBER

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    Yes, they are making way to approach the IMF. Just my prediction that PKR should fall another 5-10% before it happens. IMF made it very clear that they want PKR at 125 before they discuss bailout.
     
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  11. Areesh

    Areesh ELITE MEMBER

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    I hope dollar crosses 200 in this month

    At least @SunilM would die masturbating.
     
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  12. SOUTHie

    SOUTHie SENIOR MEMBER

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  13. indianfighter1999

    indianfighter1999 BANNED

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    200 means hyperinflation in pakistan ... I think pkr true value is around 130-135
    against INR the true value is around 65-70
     
  14. SunilM

    SunilM FULL MEMBER

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    Lets see, for how long can they hold back from increasing the price of petroleum products now. I think a massive hike of Rs 10 per litre across all products is due. No way will IMF entertain them before that.
     
  15. Areesh

    Areesh ELITE MEMBER

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    Doesn't matter. I want @SunilM happy as f*ck