Pakistani Rupee Becomes 3rd Best Performing Currency in Asia

[Morpheus]

Pakistani Rupee Becomes 3rd Best Performing Currency in Asia

Posted 3 hours ago by Haroon Hayder

Pakistani Rupee has become the third best-performing currency in Asia after it continued its unhindered climb against the US Dollar on Monday, closing the day in the interbank market at 158.91. Pakistani Rupee also hit an 8-month high against the US Dollar yesterday.
According to Alpha Beta Core, an investment banking and corporate finance and technology advisory platform, since 1st October, the Pakistani Rupee has appreciated 3.1% against the US Dollar.

The Pakistani rupee has strengthened due to a higher inflow of dollars into the economy on account of remittances and export earnings since 1 October.
Besides Pakistani rupee, Indonesian Rupiah, after regaining 4.5% against the US Dollar, and South Korean Won, after regaining 3.6% against the US Dollar, since 1 October are the top two best performing Asian currencies.

CEO Alpha Beta Core, Khurram Shehzad, has said that the improvement in rupee-dollar parity will reduce pressure on the external debt as well as imported inflation in the country.

Shehzad added that exports should not be hurt in the short run as the country’s export capacity, as per reports, is already operating at 100%-120%, while REER index (measuring competitiveness through relative currency parity) also has room for further improvement in Rupee-Dollar parity.

While commenting on the Rupee-Dollar parity, A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities, said “Dollar inflows are above-expectations. Expect another good show in remittances and the current account. With low oil prices, investors are de-dollarizing the savings. Expect further FX reserves once IMF [International Monetary Fund] tranche is cleared. A few milestones before that.”

The local currency is gaining due to a slowdown in importers’ demand for USD, while healthy inflows from remittances and export proceeds also boosted the value of the Rupee. On the other hand, exports are stable and improving.

Soomro added that Rupee’s improvement against the Dollar can be said to be the result of the inflow of remittances in USD. State Bank of Pakistan’s (SBP) measures to encourage overseas investment in the country is another contributing factor.
Improvement in exports, primarily led by the textile sector and partially assisted by the early lifting of lockdown restrictions, has also played its part in strengthening the Rupee against the Dollar.

According to the data released by the SBP, the foreign currency reserves held by the central bank on October 29 were recorded at $12,182.6 million, which is up by $61 million as compared with $12,121.5 million in the previous week.

Pakistani Rupee Becomes 3rd Best Performing Currency in Asia

Pakistani Rupee has become the third best-performing currency in Asia after it continued its unhindered climb against the US Dollar

propakistani.pk

------------------------

 

[Protest_again]

Pakistani Rupee Becomes 3rd Best Performing Currency in Asia

Posted 3 hours ago by Haroon Hayder

Pakistani Rupee has become the third best-performing currency in Asia after it continued its unhindered climb against the US Dollar on Monday, closing the day in the interbank market at 158.91. Pakistani Rupee also hit an 8-month high against the US Dollar yesterday.
According to Alpha Beta Core, an investment banking and corporate finance and technology advisory platform, since 1st October, the Pakistani Rupee has appreciated 3.1% against the US Dollar.

The Pakistani rupee has strengthened due to a higher inflow of dollars into the economy on account of remittances and export earnings since 1 October.
Besides Pakistani rupee, Indonesian Rupiah, after regaining 4.5% against the US Dollar, and South Korean Won, after regaining 3.6% against the US Dollar, since 1 October are the top two best performing Asian currencies.

CEO Alpha Beta Core, Khurram Shehzad, has said that the improvement in rupee-dollar parity will reduce pressure on the external debt as well as imported inflation in the country.

Shehzad added that exports should not be hurt in the short run as the country’s export capacity, as per reports, is already operating at 100%-120%, while REER index (measuring competitiveness through relative currency parity) also has room for further improvement in Rupee-Dollar parity.

While commenting on the Rupee-Dollar parity, A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities, said “Dollar inflows are above-expectations. Expect another good show in remittances and the current account. With low oil prices, investors are de-dollarizing the savings. Expect further FX reserves once IMF [International Monetary Fund] tranche is cleared. A few milestones before that.”

The local currency is gaining due to a slowdown in importers’ demand for USD, while healthy inflows from remittances and export proceeds also boosted the value of the Rupee. On the other hand, exports are stable and improving.

Soomro added that Rupee’s improvement against the Dollar can be said to be the result of the inflow of remittances in USD. State Bank of Pakistan’s (SBP) measures to encourage overseas investment in the country is another contributing factor.
Improvement in exports, primarily led by the textile sector and partially assisted by the early lifting of lockdown restrictions, has also played its part in strengthening the Rupee against the Dollar.

According to the data released by the SBP, the foreign currency reserves held by the central bank on October 29 were recorded at $12,182.6 million, which is up by $61 million as compared with $12,121.5 million in the previous week.

Pakistani Rupee Becomes 3rd Best Performing Currency in Asia

Pakistani Rupee has become the third best-performing currency in Asia after it continued its unhindered climb against the US Dollar

propakistani.pk

------------------------

@Morpheus please don't chew my head off for this.

But why not SBP buy those excess dollars from the market and maintain PKR stable at 175 for few months. This will shore up forex reserves substantially and also this constant PKR ups and downs will not be there. Only reason I see them doing this is they want to reduce prices in the domestic market which is affecting their popular politics. But this was a golden opportunity to stabilize the macroeconomics. At some point effect of Covid 19 on imports will wear off, then we might again see a growth in imports and resultant drop in rupee. It's best to prepare for the worse before hand.

 

[wlidlaurel]

I am no expert but could it be due to State Bank letting it fall a bit to have people sell their USD in panic due to devaluation of USD. State Bank can then buy them at cheaper rate and bring USD back to 165-170ish?

 

[Patriot forever]

@Morpheus please don't chew my head off for this.

But why not SBP buy those excess dollars from the market and maintain PKR stable at 175 for few months. This will shore up forex reserves substantially and also this constant PKR ups and downs will not be there. Only reason I see them doing this is they want to reduce prices in the domestic market which is affecting their popular politics. But this was a golden opportunity to stabilize the macroeconomics. At some point effect of Covid 19 on imports will wear off, then we might again see a growth in imports and resultant drop in rupee. It's best to prepare for the worse before hand.

It is doing that already. Just not so aggressively.

''The central bank used to undertake purchasing operation to the tune of $20 to $50 million on per day basis keeping in view liquidity into the market, said the official''.

State Bank foreign currency reserves shore up by $443m

ISLAMABAD: The State Bank of Pakistan’s foreign currency reserves went up by $443 million in one week ended on November 1, 2019 mainly because the central bank is buying dollars to shore up...

www.thenews.com.pk

 

[Protest_again]

It is doing that already. Just not so aggressively.

''The central bank used to undertake purchasing operation to the tune of $20 to $50 million on per day basis keeping in view liquidity into the market, said the official''.

State Bank foreign currency reserves shore up by $443m

ISLAMABAD: The State Bank of Pakistan’s foreign currency reserves went up by $443 million in one week ended on November 1, 2019 mainly because the central bank is buying dollars to shore up...

www.thenews.com.pk

They are worried about inflation in the economy. Already prices are so high and by buying dollars and flooding the market with PKR would zoom inflation further. This is why I think they are circumspect about going for aggressive buying.

 

[Patriot forever]

They are worried about inflation in the economy. Already prices are so high and by buying dollars and flooding the market with PKR would zoom inflation further. This is why I think they are circumspect about going for aggressive buying.

Core inflation is in single digits, the high food inflation has artificial factors contributing to it.
Yes the 1200 billion Covid cash disbursement played a part along with lowering of interest rates rapidly, combine it with disruption of supply chain. Buying dollars is not so much of a big factor, amount is not sufficient to cause significant rise in inflation but increasing remittances have a part in it.
SBP dosnt want to interfere to such extent and keep it market driven for the most part.

 

[IceCold]

It was once the worst currency in the region. Rupee has come a long way.
When your priorities are not for short term gains, its painful in the beginning but benefits starts coming down the road.

 

[GHALIB]

Pakistani Rupee Becomes 3rd Best Performing Currency in Asia

Posted 3 hours ago by Haroon Hayder

Pakistani Rupee has become the third best-performing currency in Asia after it continued its unhindered climb against the US Dollar on Monday, closing the day in the interbank market at 158.91. Pakistani Rupee also hit an 8-month high against the US Dollar yesterday.
According to Alpha Beta Core, an investment banking and corporate finance and technology advisory platform, since 1st October, the Pakistani Rupee has appreciated 3.1% against the US Dollar.

The Pakistani rupee has strengthened due to a higher inflow of dollars into the economy on account of remittances and export earnings since 1 October.
Besides Pakistani rupee, Indonesian Rupiah, after regaining 4.5% against the US Dollar, and South Korean Won, after regaining 3.6% against the US Dollar, since 1 October are the top two best performing Asian currencies.

CEO Alpha Beta Core, Khurram Shehzad, has said that the improvement in rupee-dollar parity will reduce pressure on the external debt as well as imported inflation in the country.

Shehzad added that exports should not be hurt in the short run as the country’s export capacity, as per reports, is already operating at 100%-120%, while REER index (measuring competitiveness through relative currency parity) also has room for further improvement in Rupee-Dollar parity.

While commenting on the Rupee-Dollar parity, A.A.H Soomro, Managing Director at Khadim Ali Shah Bukhari Securities, said “Dollar inflows are above-expectations. Expect another good show in remittances and the current account. With low oil prices, investors are de-dollarizing the savings. Expect further FX reserves once IMF [International Monetary Fund] tranche is cleared. A few milestones before that.”

The local currency is gaining due to a slowdown in importers’ demand for USD, while healthy inflows from remittances and export proceeds also boosted the value of the Rupee. On the other hand, exports are stable and improving.

Soomro added that Rupee’s improvement against the Dollar can be said to be the result of the inflow of remittances in USD. State Bank of Pakistan’s (SBP) measures to encourage overseas investment in the country is another contributing factor.
Improvement in exports, primarily led by the textile sector and partially assisted by the early lifting of lockdown restrictions, has also played its part in strengthening the Rupee against the Dollar.

According to the data released by the SBP, the foreign currency reserves held by the central bank on October 29 were recorded at $12,182.6 million, which is up by $61 million as compared with $12,121.5 million in the previous week.

Pakistani Rupee Becomes 3rd Best Performing Currency in Asia

Pakistani Rupee has become the third best-performing currency in Asia after it continued its unhindered climb against the US Dollar

propakistani.pk

------------------------

commendable

 

[Lincoln]

This is not a Pakistani Rupee but Bharatvarsha. Rupee is a Sanskrit word that Indoligist speculate that Indic people used in Aryavarta to buy beef curries. which they ate with Gangamati rice.

@GHALIB

Ps. Pakistani currency is the Turkish Lira.

Stop.

 

[Indus Pakistan]

Stop.

Jest.