Rupee strengthens to 97.90 against dollar

[fatman17]

Oye Sheikh Rasheed ab tera kya banay ga

KARACHI: Dollar has further depreciated against Pakistani rupee and now it values 97.90 rupees in the interbank market on Wednesday.

Several prudent measures by the government including ban on import of gold and investment flows have helped strengthen the rupee.
According to State Bank of Pakistan‚ the country received foreign direct investment of 523 million dollars in the first seven months of current fiscal year with 106.9 million dollars in the month of January alone.

In addition‚ the expected receipt of 550 million dollars from the International Monetary fund along with the proposed launch of Eurobonds next month has also led to positivity in the foreign exchange market.

Earlier‚ the rupee gone up sharply against dollar which declined to 99.90 rupees in the inter-bank market on Tuesday (March 11).

Meanwhile‚ in an interview‚ Finance Minister‚ Muhammad Ishaq Dar said all out efforts are being made to stabilise Pakistani currency.

He said national economy is showing upward trend and the rupee will further strengthen.

Dar said inflation is moving down and foreign reserves increasing.

To a question‚ Ishaq Dar said international markets are reposing confidence in the markets of Pakistan and showing keen interest in different sectors.

He said measures are being taken to control the smuggling of gold. He said measures are also being taken to resolve energy problem and to add more energy in the system.

Ishaq Dar said gas supply will be ensured to industrial sector.

ONLINE - International News Network

what was prudent on govt. part.
they went begging and got 1.5B$ donation from KSA for the PDF. now they have gone to UAE for similar request. the IMF already approved 6.5B$ stand-by loan. the US is willing now to release 1.6B$ CSF funds. all money based on begging and borrowing.

 

[Crypto]

By commodity I guess you mean petroleum. It will not happen till government decides to pass on the price reduction to consumers, which they may choose not to do fully to bridge fiscal deficit further. All other major commodities are locally produced and will have price impact only if petroleum prices are lowered(transportation cost).

@VCheng, why so defensive? I just ask you your method of deduction and the hard data you used for it. So what was your method? Was it a proper forecasting model or was it just a gut feeling. If you can't provide hard data and your forecasting model then the whole thing is just your speculation andeven if it happens it's just a tukka, hardly an intellectual feat.

Nope not petroleum!

 

[graphican]

I see businessmen are going to make lots of money soon as rupee will return back to 105+

 

[Jazzbot]

Guys, just sit back and enjoy this roller coaster ride of Rupee.

 

[Chak Bamu]

@cb4, I hope you understand what is happening to exporters as rupee appreciates.

This rise is like a bomb going off in the market. It definitely should have been managed so that it happened over months, not days.

And please stop posting foreign exchange threads everyday. It is annoying to say the least.

 

[Xracer]

97.900.....................speechless Man
Good Going Darrrrrrrrrrrrrrrllllling

 

[VCheng]

@VCheng if it was the real deal, commodity prices should have come down too
Pumping dollars in the reserve to artificially strengthen rupee will not work for too long.

Yes, if the rally in PKR value has any legs, inflation should come down. But it doesn't, and it won't.

 

[Rank]

Artificially hold @ 97.... If Govt willl not expand Tax revenue and also not increase export & apply taxes on so called AMEER TABKA .. this 97 will automatically increase up-to previous level.

 

[ziaulislam]

Yes, if the rally in PKR value has any legs, inflation should come down. But it doesn't, and it won't.

take at least 6 weeks for any decrease. trickle effect will happen mainly due to petroleum prices and import commodities.
some affect is already visible IMF projected double digits inflation while it stayed in single digits

 

[Counter-Errorist]

It's a pretty sharp decline. Quite clearly manufactured and without substance.

 

[xyxmt]

@VCheng if it was the real deal, commodity prices should have come down too
Pumping dollars in the reserve to artificially strengthen rupee will not work for too long.

In Pakistan you dont have a culture of prices coming down, too much profit taking by companies. A small company owner in Pakistan lives like a king whereas same size business owner in Canada lives like a middle class

 

[VCheng]

A small company owner in Pakistan lives like a king whereas same size business owner in Canada lives like a middle class

Because the small company owner in Canada pays all his taxes fairly.

 

[Bilal.]

Nope not petroleum!

If you are talking about atta, daal, chawal, sabzi then it will have no significant impact on their prices since they are locally produced.

 

[xyxmt]

Because the small company owner in Canada pays all his taxes fairly.

that plus pays employees fairly, plus no business mafia just fair competition