Pakistani Rupee rises further against US dollar in open and interbank Markets

[ARMalik]

Really dumb to see comments about government corruption with conspiracies. PDF should have educated you better.

Currencies fluctuate up and down in open market trading. This is the norm. Pak economy is doing well so there may be a tendency for the rupee to appreciate.

Really disappointed with the quality of PDF, going down with dumb people that refuse to learn and improve themselves.

Did you have a look at yourself in the mirror recently?

 

[A.A. Khan]

Rofl Rupee declines Rs. 3-4 and appreciates 20paisa and some idiots start celebrating.

Pakistani economy is being given drugs by Imran Khan's IMF hitmen Reza Baqir and Hafeez Shaikh called Foreign Hot money (mainly from investors from IMF) who are there to protect the valuation of dollar due to unforeseen circumstances like the huge reduction in oil prices and coronavirus impact. For this they have kept interest rates up in double digits. Less consumer spending, negligible local investment and absolutely zero long term foreign investment. Pakistan Stock Market on IMF dollar rumors collapsed yesterday. This is whole mafia including bureaucracy as well as Forex traders doing artificial shortage. In open market yesterday dollar was'nt available for even for Rs. 160.

 

[Armchair]

Monetary policy does not work well in Pakistan - it barely impacts inflow of foreign investment.

Pak interest rates have been in double digits for most of last over 2 decades.

Just dumb wannabe economists-cum-conspiracy nuts.

Must be the conspiracy culture. Everything in Pakistan has to be a conspiracy.

 

[HttpError]

Opening a savings account in PKR is no less than burning your savings these days.

 

[Dr. Strangelove]

Currencies all over the world have depreciated due to panic buying of USD due to the recent market meltdown as a result of Saudi-Russian Oil price war and Corona Virus. This is not limited to Pakistan.

 

[xyxmt]

how about all you economists check USD rates against CAD, Euro and Pound. do we see any similarities?
USD rose against most currencies after march 8th, even against INR (your fav compression country)

 

[ejaz007]

Dollar gains Rs 4.53 in interbank market, reaches Rs 166.13
News Desk

MARCH 27, 2020

The greenback gained to record levels against the rupee on Thursday as it climbed a further Rs4.53 in the interbank market and was being traded at Rs166.13, Geo News reported.

The dollar has gained Rs7.46 in the past three days as a back-to-back reduction in interest rates catalyses foreign capital flight from Pakistan’s debt market.

On Wednesday, the rupee had fallen 1.63% or Rs2.60 versus the dollar to close at Rs161.60. It had closed at 159 to the greenback in the previous session.

In open trade, the rupee had fallen Rs 1.50 to end at Rs160 per dollar.

Traders said foreign investors were upset over the sudden decision to slash the policy rate by the central bank and resorted to panic selling of treasury bills (T-bills), according to a report in The News.

The market is under a float regime that indicates further depreciation in the parity in coming days, they said.

“With the sharp and unexpected rate cut and huge stimuli, the rupee should have weakened by around 5 to 7%, but the rupee held better than expected,” said Eman Khan, an analyst at Tresmark, an application that tracks financial markets.

The State Bank of Pakistan (SBP) lowered policy rate by a cumulative 225 basis points to 11% in two monetary policy announcements in a week.

This emergency move was designed to help the struggling economy cope with the fallout of a preventive lockdown as the coronavirus disease breaks out nationwide.

Foreign investors sold a net $95 million worth of T-bills on March 24, the SBP’s data showed. With this repatriation, total divestment in March reached $1.501 billion.

Zeeshan Azhar, an analyst at Foundation Securities said domestic investors are moving money from bank deposits to hoarding dollars.

“PKR should continue to decline for a few more days as the SBP has also said that it is monitoring the situation and stands ready to act further should the need arise,” Azhar said. “If the SBP is intervening in the PKR-USD market by selling dollars, then its FX reserves would fall.”

Dealers said the rupee came under severe pressure against the US currency after significant outflows of capital from the stock market and government bonds.

“The central bank didn’t intervene in the foreign exchange market to address liquidity or excessive market moves in the local currency,” a forex dealer, who declined to be named, told The News. Analysts said the COVID-19 turmoil is likely to hurt balance of payments in future. The expected decline in remittances and exports could put pressure on the current account deficit. However, drop in oil prices could lead to reduction in oil import bills.

https://dailytimes.com.pk/583650/dollar-gains-rs-4-53-in-interbank-market-reaches-rs-166-13/