US dollar reaches Rs160 in interbank market

[Norwegian]

US dollar reaches Rs160 in interbank market


KARACHI: US dollar reached Rs160 in the interbank market on Wednesday.

The US dollar rose by Rs2.2 at the start of the trading.

The rupee has been falling against the dollar following an agreement with the International Monetary Fund on a $6 billon loan with expected strict conditions including a “market determined” exchange rate.

The rupee’s official exchange rate is supported by the central bank under a de facto managed float system and many analysts consider the currency to be overvalued.

According to data from the State Bank, the central bank’s foreign exchange reserves as of May 3 stood at $8.984 billion, equivalent to less than three months of import payments.

 

[Arsalan]

US dollar reaches Rs160 in interbank market


KARACHI: US dollar reached Rs160 in the interbank market on Wednesday.

The US dollar rose by Rs2.2 at the start of the trading.

The rupee has been falling against the dollar following an agreement with the International Monetary Fund on a $6 billon loan with expected strict conditions including a “market determined” exchange rate.

The rupee’s official exchange rate is supported by the central bank under a de facto managed float system and many analysts consider the currency to be overvalued.

According to data from the State Bank, the central bank’s foreign exchange reserves as of May 3 stood at $8.984 billion, equivalent to less than three months of import payments.

@BHarwana told you bro, rise it will! you were saying that it will come down in next few days but please note that once we let it float free, it was bound to go up once. Will be in the 160s for a month or so, may even go to lower 70s for a few days.

As per some analysis the real value back in 2017January was around 165Rs for a dollar. It was being kept down for political reasons.
I wont be surprised if dollar continues its upward trend and ends up around 160-165 Rs mark in next few days.

I expect it to go to 165-170 mark over next 6 to 8 weeks and then come back to 145-150 bracket around November. Lets see!

 

[zulu]

December my prediction for long time.This current rise is happening to buy by govt for payment or private sector(highly doubtful) have to check

I expect it to go to 165-170 mark over next 6 to 8 weeks and then come back to 145-150 bracket around November. Lets see

 

[Reddington]

By the end of this year Rupee will definitely be 200 to a dollar.............

 

[H!TchHiker]

This is very good step by PTI government..

 

[El Sidd]

People will blindly follow PM and PTI. Once we let the dollar float free it'll touch 200. There's no coming back and it will go up from 200. There's no economic policy. No increase in exports. Only taxes are being enforced on the already crushed middle class. The rich are getting richer through amnesty schemes. This selected goof in the office i has no idea what he's doing. Gotta pack the bags and immigrate to a better nation.

looks like you are ghabraying.

by the way whose making money from all of this hike? any idea?

dont worry man faisal wowda will create millions and millions of jobs and look even british airways is back in pakistan. must be the ganja !!

 

[Arsalan]

This is very good step by PTI government..

Government have let it float free. They are not anchoring it down and it should have always been this way. Market is determining the dollar rate now, not state bank.

People will blindly follow PM and PTI.

That should not happen as this will lead us to the same place we have been for decades!

Once we let the dollar float free it'll touch 200. There's no coming back and it will go up from 200. There's no economic policy. No increase in exports. Only taxes are being enforced on the already crushed middle class. The rich are getting richer through amnesty schemes. This selected goof in the office i has no idea what he's doing. Gotta pack the bags and immigrate to a better nation.

It wont. The real Rs value is around 167. Free floating dollar may go a few rupee higher initially but then it will come back to this and in 4-5 months it will be around 150 Rs mark.

 

[H!TchHiker]

Government have let it float free. They are not anchoring it down and it should have always been this way. Market is determining the dollar rate now, not state bank.


That should not happen as this will lead us to the same place we have been for decades!


It wont. The real Rs value is around 167. Free floating dollar may go a few rupee higher initially but then it will come back to this and in 4-5 months it will be around 150 Rs mark.

We will judge the results after a year or two of government policy as to what they achieved by making it market based dollar rate along with double digit accelerating interest rate and inflation

 

[Arsalan]

We will judge the results after a year or two of government policy

We should. That will be the sensible thing to do.

 

[KeyBORED Warrior]

@BHarwana told you bro, rise it will! you were saying that it will come down in next few days but please note that once we let it float free, it was bound to go up once. Will be in the 160s for a month or so, may even go to lower 70s for a few days.



I expect it to go to 165-170 mark over next 6 to 8 weeks and then come back to 145-150 bracket around November. Lets see!

How did you predict that figure? Are you an economist? Or are you in the know of things? I am asking because i live abroad and have to make certain payments and i want to know what will be the best time to make the most of it. Either way, will be contributing whatever little i have to the local economy so no harm done.

MOD EDIT

 

[zulu]

Sabar sabar sabar December tak bht time bht sary known and unknown factors going to play.Mechanism already in place with eyes keeping watch,its time to trust the market

By the end of this year Rupee definitely be 200 to a dollar.............

 

[Arsalan]

STICK TO TOPIC GUYS. This thread is NOT for you to exchange jibes.If you have anything to contribute toward the discussion please do so otherwise its best to just read and move on.

How did you predict that figure? Are you an economist? Or are you in the know of things? I am asking because i live abroad and have to make certain payments and i want to know what will be the best time to make the most of it. Either way, will be contributing whatever little i have to the local economy so no harm done.

Its based on some data made available. I am not an economist but i am involved in export business and we have to keep a close eye on dollar exchange rate. The associations and bodies we are part of keep monitoring and studying all this and what i am saying now and have said in the past is all based on this study.

The real value of dollar based on our export-import trade gap (earnings and spending in US$) is around 167$. When you allow dollar to float free it goes up and like will cross the real value mark, go up a few rupee and then come back down to the real value mark. However the real value is expected to improve and that is likely to bring dollar to 145-150 mark in November-December.

 

[zulu]

Oh thats why we both seeing/focusing diff safe figure according to our fields (me from import side ) see @Reddington how much market see things differentially in its own so cant expect ordinary person to understand it better

i am involved in export business and we have to keep a close eye on dollar exchange rate

 

[El Sidd]

STICK TO TOPIC GUYS. This thread is NOT for you to exchange jibes

200 by December.
MOD EDIT

 

[Arsalan]

200 by December.
MOD EDIT

Try, you can do better than this!
As i said, stick to topic. This thread is NOT for your to exchange jibes and troll. Discuss the topic or move on!

Oh thats why we both seeing/focusing diff safe figure according to our fields (me from import side ) see @Reddington how much market see things differentially in its own so cant expect ordinary person to understand it better

lolz! So the slight difference is our valuation and the time frame is explained. Meaning we are both on same page more or less!