9-month high: Rupee strengthens to 99 against dollar

[farhan_9909]

As per a Export on ARY news,He said the rupee value against dollar might even go below 95 By the End of this fiscal year(june)

And No,This is not becasue of Dollar value getting decrease.

Check the value of PKR against AED's.Hell the UAE express converts it to 26.98pkr for 1 AEd'.While few months earlier it was slightly less than 30

 

[iPhone]

The remittance are gonna increase big time from overseas Pakistanis. I had to send an extra 100 USD to match 100k PKR, which usually came to around 900 USD.

 

[VCheng]

As per a Export on ARY news,He said the rupee value against dollar might even go below 95 By the End of this fiscal year(june)

And No,This is not becasue of Dollar value getting decrease.

Check the value of PKR against AED's.Hell the UAE express converts it to 26.98pkr for 1 AEd'.While few months earlier it was slightly less than 30

Such a drastic and sudden over-valuation of the PKR is simply not sustainable given the weak fundamentals.

If it reduces inflation !

It won't. Look at the prices in almost everything around you and describe what you see. Honestly.

 

[HRK]

Will Resign and leave my National Assembly Seat if Dollar comes down to 98 : Sheikh Rasheed Ahmed


@HRK @faisal6309 @Imran Khan @Pakistanisage ??

Badshoo even If $ falls to Rs. 98 for one or few days it will not remain stable at that rate .... 'just price' for $ against PKR is Rs.100, so it will hover around +100 till June, but after June it is bound to rise up again @ +103.

 

[farhan_9909]

Such a drastic and sudden over-valuation of the PKR is simply not sustainable given the weak fundamentals.

Not really,The real value of PKR still is at 70 against a dollar

It was the last govt and the imf conditions they had agreed to to devalue the rupee,.

 

[Leader]

Such a drastic and sudden over-valuation of the PKR is simply not sustainable given the weak fundamentals.



It won't. Look at the prices in almost everything around you and describe what you see. Honestly.

then to whom all this is good for? importers?

 

[xyxmt]

KARACHI: The US dollar depreciated against the Pakistani rupee, reaching a 9-month low, Express News reported on Tuesday.The rupee-dollar parity now stands at Rs99.90 in the interbank market, decreasing by Rs1.52 today.Speaking to The Express Tribune, Standard Chartered Bank Senior Economist Sayem Ali had said the rally is driven more by sentiments, as macros remain largely weak.“Sentiments have shifted due to positive IMF staff reviews, expectations of significant aid and investment inflows in 2014, and interventions by the State Bank of Pakistan (SBP) through the forward/swap market,” Ali had said.An inflow of investment in fiscal year 2013-14 also helped shift market sentiments in favour of the rupee. According to the SBP, Pakistan received foreign direct investment (FDI) of $523 million in the first seven months of 2013-14. FDI amounted to $106.9 million in January alone.In addition, the expected receipt of $550 million from the International Monetary Fund (IMF), along with the launch of Eurobonds amounting to $500 million likely next month, has also led to positivity in the foreign exchange market.While appreciation of the rupee will contain inflation, a stronger currency will inevitably make exports less competitive.“Hence, a widening trade gap will put more pressure on foreign exchange reserves, forcing the SBP to readjust the rupee to equilibrium levels,” Ali had noted.



9-month high: Rupee strengthens to 99 against dollar – The Express Tribune

PTI crowd was making fun of Dar when he said Dollar will be back at 98 level soon.

 

[Jazzbot]

Rumors are that new grant from IMF have caused this, but can't find any source to back up that claim. Not sure whether its true or not. Lets see.

Any how, good development if its stable.

 

[VCheng]

then to whom all this is good for? importers?

An overvaluation of the PKR will make imports cheaper and exports more expensive. Net importers will increase their profit margin but exporters will decrease theirs since the price of their products will go up in the international markets or they will get less rupees in return, making them less competitive.

This cannot last, since such an imbalance will make the overall balance of payment even more adverse that what it is already.

The current bubble has a lot of vested interests behind it. Some people will make a killing in the exchange markets, while the whole country will pay a heavy price for this ill-advised exercise in the coming months.

 

[S.Bukhari]

An overvaluation of the PKR will make imports cheaper and exports more expensive. Net importers will increase their profit margin but exporters will decrease theirs since the price of their products will go up in the international markets or they will get less rupees in return, making them less competitive.

This cannot last, since such an imbalance will make the overall balance of payment even more adverse that what it is already.

The current bubble has a lot of vested interests behind it. Some people will make a killing in the exchange markets, while the whole country will pay a heavy price for this ill-advised exercise in the coming months.

If for the sake of your argument we accept your theory how much increase we had in exports and how much decrease in imports in last five years???
The thing is PKR was devalued by Zardari and co for their interests , the real and realistic value of PKR should be around 70-75 in present economic circumstances .

 

[Secularpakistani]

This is really great and such devaluation of USD to PKT is rare i can,t believe my eyes USD TO PKR is falling like a rock.We really need to figure out whats the fundamentals behind this progress and should stick to them in future.

 

[VCheng]

the real and realistic value of PKR should be around 70-75 in present economic circumstances .

How did you arrive at this figure? The real value of the PKR will remain on a downward trend at about 10% per year, no matter who is in power. Any shoring up done by manipulation will not last. The only real change that will last is if Pakistan produces more and consumes less. There is no other long term way.

 

[S.Bukhari]

How did you arrive at this figure? The real value of the PKR will remain on a downward trend at about 10% per year, no matter who is in power. Any shoring up done by manipulation will not last. The only real change that will last is if Pakistan produces more and consumes less. There is no other long term way.

It's not only the balance between imports and exports but there are many factors though we import crude OIL to generate electricity which is one factor but as I mentioned before we are a non Tax paying Nation around 3M rich don't pay a single penny in terms of direct tax so the government has to borrow from IMF and world bank and other sources on the other hand our institutions eg, PIA, PR, Wapda , PSM are in loss and GOP have to bailout these enterprises annually which is worth around 400-500 billion PKR .
If we may be able to convert our electricity generation from crude oil to Coal , Nuclear , hydro and solar we can easily save around $10 billion per year.

 

[forcetrip]

An overvaluation of the PKR will make imports cheaper and exports more expensive. Net importers will increase their profit margin but exporters will decrease theirs since the price of their products will go up in the international markets or they will get less rupees in return, making them less competitive.

This cannot last, since such an imbalance will make the overall balance of payment even more adverse that what it is already.

The current bubble has a lot of vested interests behind it. Some people will make a killing in the exchange markets, while the whole country will pay a heavy price for this ill-advised exercise in the coming months.

This is whats happening. I will put a pin on this for 6 months. I am actually going to increase my personal revenue by around 10% as things are looking. Overall, prices will not decrease unless price of power decreases. Hopefully it will last this whole year but I give it another 5 months for it to jump back to 110. Lets hope its not a predetermined scheme for some heavy hitters to sell high and buy low. Its not far fetched with the current crop of thieves running the show.

 

[VCheng]

Lets hope its not a predetermined scheme for some heavy hitters to sell high and buy low. Its definitely another possibility.

Hope all you want, that "possibility" is quite close to reality.

It's not only the balance between imports and exports but there are many factors though we import crude OIL to generate electricity which is one factor but as I mentioned before we are a non Tax paying Nation around 3M rich don't pay a single penny in terms of direct tax so the government has to borrow from IMF and world bank and other sources on the other hand our institutions eg, PIA, PR, Wapda , PSM are in loss and GOP have to bailout these enterprises annually which is worth around 400-500 billion PKR .
If we may be able to convert our electricity generation from crude oil to Coal , Nuclear , hydro and solar we can easily save around $10 billion per year.

These are all reasons that also go into the steady decline in value of the PKR.