Dollar hits historical high at Rs157 intraday in interbank market

[lightoftruth]

The value of the US dollar against the rupee touched another all-time high for the second consecutive day, reaching approximately Rs157 in the interbank market during intraday trading on Friday.

The greenback was being traded at about Rs156.50 in the open market.

In the last two days, the local currency has lost Rs5 against the dollar setting a new record of Rs157 in the interbank market.


The rupee’s slide had continued on Thursday as it fell as low as Rs154 in the interbank market.

Currency dealers held the financial year end responsible for the situation.

According to dealers, dollar flight has increased because multinational companies are taking profits out of the country as the book closing date — June 30 — is approaching.

As a result, they said, demand for the greenback has increased, putting the interbank market under pressure, whereas the open market is just mimicking the former.

“There was no check from the State Bank. A panic-like situation was seen in the market since every offer to sell dollars was higher than the previous one,” a banker had told Dawn on Thursday while explaining the volatility.

“If [the rupee’s slide] is not stopped, the dollar may hit Rs180 in just a few weeks,” said another senior banker worried about the government’s agreement with the International Monetary Fund (IMF) regarding the exchange rate management.

Bankers were confused as to why the SBP did not intervene in the market to arrest the rupee’s slide.

The volatility in the currency market had subsided in the days prior to Eidul Fitr amid high inflows during the festive season.

Currency dealers, commenting on the rupee’s slide, said that there was no shortage of dollar since the dealers had deposited surplus dollar reserves with the banks.

A currency analyst, while explaining the intraday fluctuation, said that with a free float regime in place, demand exceeded supply, squeezing the rupee in a thinly-traded market.

“Demand was higher than usual also because of an upcoming IMF repayment,” he said.
https://www.dawn.com/news/1488173/dollar-hits-historical-high-at-rs157-intraday-in-interbank-market

 

[IceCold]

Its trading at 153.45 buying and 153.95 selling at inter bank today. What the hell is dawn smoking Bharti??

 

[maithil]

Good for Exports. Especially Tomato.

 

[Yaseen1]

i think govt want to devalue currency so that institutions it wants to privatize become cheaper for buyers of these institution who may be those capitalist like jhangir Tareen and other investors who funded them in winning elections or other foreigner investors who imf wants to buy our institution for cheap price

 

[Sine Nomine]

i think govt want to devalue currency so that institutions it wants to privatize become cheaper for buyers of these institution who may be those capitalist like jhangir Tareen and other investors who funded them in winning elections or other foreigner investors who imf wants to buy our institution for cheap price

Bulls eye.

 

[Chhatrapati]

Guess it's the worst performing currency.

 

[JohnWick]

Very much burden for a common person....

 

[INDIAISM]

@BHarwana

1 INR = 2.25 Pkr
1 Bangla Takka =1.85 Pkr
1 Nepali Rupee = 1.40 Pkr

Very Bad,Very Sad

Congrats guys for having the second weakest currency in SAARC countries ...Just need 20 Pkr more to wear the crown of the weakest currency in SAARC countries..

 

[Protest_again]

@BHarwana

1 INR = 2.25 Pkr
1 Bangla Takka =1.85 Pkr
1 Nepali Rupee = 1.40 Pkr

Very Bad,Very Sad

Congrats guys for having the second weakest currency in SAARC countries ...Just need 20 Pkr more to wear the crown of the weakest currency in SAARC countries..

SBP doesn't have enough reserves to defend rupee anymore. They can do so after securing IMF package and when they go to primary markets to raise more debt in dollars.

 

[H!TchHiker]

No problem even if touches 200..People will pay for honest government..

 

[bananarepublic]

Good for Exports. Especially Tomato.

And potatoes.

 

[lightoftruth]

From 107 to 157.

200 by year end is reasonable.

So sad and so bad.

 

[ni8mare]

Rupee takes historic plunge in inter-bank market
By Salman Siddiqui
Published: June 14, 2019
TWEET EMAIL

PHOTO: REUTERS

KARACHI: Pakistani currency weakened to a record low at Rs156 to the US dollar at a point of trade in the inter-bank market on Friday.

The currency has freshly lost Rs3.10 from yesterday’s close Rs152.90— a cumulative drop of Rs8.62 in the past six working days since June 3.

“[Apparently] the mounting import payment and foreign debt repayment pressures have led to the rupee’s plunge,” Next Capital Managing Director Muzammil Aslam said while talking to The Express Tribune.

A long list of import orders— which could not be processed by banks due to the Eid and weekly holidays from June 4 to 9— created higher demand for dollars in the inter-bank market, he said.

Secondly, Pakistan is scheduled to make most of the external debt repayment and interest payment by the end of June. “These two developments have created massive demand for dollars at a time when the country’s foreign currency reserves are depleting consistently,” he said.

Rupee hits all-time low at 152.9 against the dollar

The State Bank of Pakistan (SBP) reported on Thursday “during the week ended June 3, 2019, the SBP’s reserves decreased by $55 million to $7,807.2 million due to payments on account of external debt servicing.”

The reserves stand insufficient to cover even two months of import payments. On an average, Pakistan has made import payments worth $4.5 billion a month over the past 10 months. Apart from the drop in the reserves, market talk suggests the PTI government will allow the rupee to depreciate to Rs160-165 to the greenback under the International Monetary Fund (IMF)’s condition for a bailout package of $6 billion.

High government officials have, however, denied this time and again and have stated no level has been agreed for rupee depreciation. However, the government will end state control of the rupee-dollar exchange rate and let market forces determine the rate.

Adviser to PM on Finance Dr Abdul Hafeez Shaikh said at the post-budget press conference on Wednesday that the IMF Executive Board would approve the loan in two to four weeks.

Taurus Securities analyst Mustafa Mustansir said that heavy tax-loaded budget has made market participants panic as the government has announced withdrawing zero-rated tax incentive from the five main export sectors including textile, leather, carpet, sports and surgical goods. Accordingly, the government has imposed 17 per cent general sales tax on the five zero-rated sectors. This may further deteriorate Pakistan’s exports, which have already remained sluggish for past several years due to lack of planning, he said.

The government has announced narrowing down current account deficit to $7 billion in next fiscal year compared to estimated $12 billion in the outgoing year.

“However, the government did not announce concrete measures in the budget as to how it would contain the deficit,” he said. “The situation has created panic-like situation in the inter-bank market and mounted pressure on the rupee,” he said.

 

[Hiraa]

153 at currency exchangers.

 

[Rusty]

before things get better they have to hit rock bottom first.
That is all that is happening right now.

India went through the same in the early 90s.