Rupee firms against US dollar

[Panther 57]

My information is that this fall in dollar is because of KSA's deferring of oil payments. How long and what is the cost?

 

[VCheng]

My information is that this fall in dollar is because of KSA's deferring of oil payments. How long and what is the cost?

This covert support will last a few months and then we will have another panic freefall as the devaluation needed to readjust the rate happens over a few weeks. The fundamentals of the economy indicate a steady 10% fall approximately annually unless something changes.

 

[Secularpakistani]

Hi everyone) Guys i think it,s the result of our rise in exports which is making PKR stronger against USD a few days ago it was 104.50 and now it,s below 101,its quite amazing in just few days.I think nawaz sharif government is doing good with our economy ,how many of you agree with me ?

The Pakistani rupee continues to gain ground against the US dollar. Currency dealers have projected that the US dollar will be valued under Rs100.

According to Forex dealers, the US dollar depreciated by Rs1.12 at the start of trading and was valued at Rs102.

In the open market the dollar decreased from Rs103.45 and was being traded at Rs101.90.
Source:
Rupee firms against US dollar | Pakistan Today

 

[VCheng]

This is the result of deferred payments for oil and other similar covert support from the Middle East and is a temporary bubble only.

 

[Secularpakistani]

This is the result of deferred payments for oil and other similar covert support from the Middle East and is a temporary bubble only.

I hope what you said is not true because we need a sustainable long term real economy development .Such temporary bubbles are wet dreams just like we had in musharaff time period.

 

[SBD-3]

This is the result of deferred payments for oil and other similar covert support from the Middle East and is a temporary bubble only.

Oil deferred payments? when did we have an agreement of that sort recently? Actually the inflows have picked up. SBP just received 750 Mio USD from KSA in Pakistan Development Fund the day before yesterday,Plus the exports data relased today showed a healthy growth. Market is aware of that and we may witness 100.50 sometime tomorrow. Shaikh Rasheed is in big trouble.

I hope what you said is not true because we need a sustainable long term real economy development .Such temporary bubbles are wet dreams just like we had in musharaff time period.

"Real" economic development (Economic development, by default, means imporovement in real socio-economic indicators) and nominal exchange rate management are two different things.

 

[VCheng]

Oil deferred payments? when did we have an agreement of that sort recently? Actually the inflows have picked up. SBP just received 750 Mio USD from KSA in Pakistan Development Fund the day before yesterday,Plus the exports data relased today showed a healthy growth. Market is aware of that and we may witness 100.50 sometime tomorrow. Shaikh Rasheed is in big trouble..........

These payments and the recent bubble in value are all short term manipulations. The long term value of the PKR will remain under great pressure and a downward slide given the weak overall economy.

 

[SBD-3]

These payments and the recent bubble in value are all short term manipulations. The long term value of the PKR will remain under great pressure and a downward slide given the weak overall economy.

of course, until the current account balance doesn't turn positive, there will be a depreciation bias (not a great pressure), but we do have impressive home remittances to back the deficit up. All we need is an external account re-engineering to plug the gap between exports and imports. And post GSP, textile exports have picked up.

 

[Secularpakistani]

"Real" economic development (Economic development, by default, means imporovement in real socio-economic indicators) and nominal exchange rate management are two different things.

Bhai jaan but in general our currency performance is related to our economic development.That,s what i meant.

 

[Bilal.]

Oil deferred payments? when did we have an agreement of that sort recently?

In the imagination of rumour mongers and don't you dare ask them to back it up with hard facts or proofs.

Dollar below 101 as per xe currency at the moment.

 

[VCheng]

of course, until the current account balance doesn't turn positive, there will be a depreciation bias (not a great pressure), but we do have impressive home remittances to back the deficit up. All we need is an external account re-engineering to plug the gap between exports and imports. And post GSP, textile exports have picked up.

Yes, about 10% devaluation every year is about right given the current adverse trends in the balance of payments, despite short term rescue props such as the present one.

 

[Sugarcane]

Yaar don't open daily threads on dollar rate, specially when it's falling

 

[livingdead]

Yaar don't open daily threads on dollar rate, specially when it's falling

bad news for expats...

 

[VCheng]

bad news for expats...

The real problem is the high rate of inflation which affects everybody quite adversely. With the recent rise in oil prices on the world markets due to the Ukraine crisis, the knock-on affect within Pakistan is going to only add to the inflation rate soon.

 

[guluchulo]

Sheikh Rasheed Tera Kay banay ga Kalia. Will he resign if dollar further goes down.

Did he bet on it?