Tag: Interbank Foreign Exchange Market

KARACHI: The Pakistan Rupee (PKR) fell sharply by Rs2.26 against the US dollar on Tuesday during midday trading at interbank foreign exchange market.

The dollar is currently trading at Rs184.80 from last day’s closing of Rs182.54 in interbank foreign exchange market.

READ MORE: Dollar ends PKR recovery spree; closes at Rs182.54

The rupee made significant recovery for seven consecutive trading sessions after the central bank announced a sharp increase in key policy rate.

The SBP on April 07, 2022 announced 2.5 per cent increase in interest rate to enhance the key policy rate to 12.25 per cent from 9.75 per cent. The rupee was at all-time low Rs188.18 to the dollar on the day of monetary policy announcement.

READ MORE: Dollar plummets against PKR for seven consecutive days

However, following the announcement the rupee rallied for seven straight days and recovered Rs6.63 against the dollar.

The rebound in dollar value on Monday may be attributed to the further depletion in foreign exchange reserves of the county.

Pakistan’s foreign exchange reserves hit a 22-month low after falling for nine consecutive weeks to $17.03 billion.

READ MORE: Dollar retreats for 6th straight day; falls to Rs181.58

According to data released by the State Bank of Pakistan (SBP), the foreign exchange reserves of the country fell by $449 million to $17.028 billion by week ended April 08, 2022 as compared with $17.477 billion a week ago.

The foreign exchange reserves were at $17.971 billion by week ended June 26, 2020.

READ MORE: Rupee up 13 paisas to continue recovery against dollar

Pakistan’s foreign exchange reserves have declined by $10.23 billion in the past seven months owing to extreme pressure of dollar demand for import payments and external repayment of government debt.

The country’s foreign exchange reserves hit an all-time high of $27.228 billion on August 27, 2021.

KARACHI: The US dollar on Monday ended gaining spree of the Pakistan Rupee (PKR) and rebounded with a gain of 99 paisas.

The rupee ended Rs182.54 to the dollar from previous last Saturday’s closing of Rs181.55 in the interbank foreign exchange market.

READ MORE: Dollar plummets against PKR for seven consecutive days

The rupee made significant recovery for seven consecutive trading sessions after the central bank announced a sharp increase in key policy rate.

The SBP on April 07, 2022 announced 2.5 per cent increase in interest rate to enhance the key policy rate to 12.25 per cent from 9.75 per cent. The rupee was at all-time low Rs188.18 to the dollar on the day of monetary policy announcement.

READ MORE: Dollar retreats for 6th straight day; falls to Rs181.58

However, following the announcement the rupee rallied for seven straight days and recovered Rs6.63 against the dollar.

The rebound in dollar value on Monday may be attributed to the further depletion in foreign exchange reserves of the county.

Pakistan’s foreign exchange reserves hit a 22-month low after falling for nine consecutive weeks to $17.03 billion.

READ MORE: Rupee up 13 paisas to continue recovery against dollar

According to data released by the State Bank of Pakistan (SBP), the foreign exchange reserves of the country fell by $449 million to $17.028 billion by week ended April 08, 2022 as compared with $17.477 billion a week ago.

The foreign exchange reserves were at $17.971 billion by week ended June 26, 2020.

READ MORE: Rupee continues recovery to dollar for 4th straight day

Pakistan’s foreign exchange reserves have declined by $10.23 billion in the past seven months owing to extreme pressure of dollar demand for import payments and external repayment of government debt.

The country’s foreign exchange reserves hit an all-time high of $27.228 billion on August 27, 2021.

KARACHI: The US dollar retreated against Pakistan Rupee (PKR) for the sixth straight day on Friday since the central bank aggressively increased the key policy rate on April 07, 2022.

The exchange rate ended at Rs181.58 to the dollar on Friday as compared with previous day’s closing of Rs181.69 in the interbank foreign exchange market.

READ MORE: Rupee up 13 paisas to continue recovery against dollar

The local currency has made sharp recovery against the dollar since the significant raise was announced in the policy rate on April 07, 2022.

The State Bank of Pakistan (SBP) announced an unprecedented increase in policy rate by 250 basis points to 12.25 per cent. The massive rise in interest rate surprised the market and trade and industry are in state of shock. The massive hike in policy rate also resulted in a sudden decline in demand for dollar.

This is the reason behind five consecutive gain in rupee value during past five trading sessions.

READ MORE: Rupee continues recovery to dollar for 4th straight day

The rupee hit all-time low of Rs188.18 to the dollar on April 07, 2022. Since then the rupee recovered Rs6.60 against the dollar during past six straight trading sessions.

The SBP noted that the recent developments necessitated a strong and proactive policy response.

Accordingly, the Monetary Policy Committee (MPC) decided at its emergency meeting today, to raise the policy rate by 250 basis points to 12.25 percent.

READ MORE: Rupee makes recovery to dollar for third straight day

This increases forward-looking real interest rates (defined as the policy rate less expected inflation) to mildly positive territory. The MPC was of the view that this action would help to safeguard external and price stability.

The MPC also noted that SBP is in the process of taking further actions to reduce pressures on inflation and the current account, namely an increase in the interest rate on the export refinance scheme (EFS) and widening the set of import items subject to cash margin requirements. These items are mostly finished goods including luxury items and exclude raw materials.

The announcement of these measures is expected soon and will complement the action taken by the MPC on interest rates.

READ MORE: Rupee recovers sharply; dollar eases to Rs182.93

KARACHI: The Pakistan Rupee (PKR) continued to make recovery for the fourth straight day against the dollar on Wednesday since sharp enhancement in policy rate to 12.25 per cent.

The rupee ended Rs181.82 to the dollar from previous day’s closing of Rs182.02 in the interbank foreign exchange market.

READ MORE: Rupee makes recovery to dollar for third straight day

The rupee fell to all-time low at Rs188.18 to the dollar on April 07, 2022. On the same day the State Bank of Pakistan (SBP) announced a massive raise in interest rate by 250 basis points to 12.25 per cent from 9.75 per cent.

Prior to the policy rate increase the dollar was unabated for over a two week and rupee fell continuously.

READ MORE: Rupee recovers sharply; dollar eases to Rs182.93

The rupee recovered around Rs6.36 against the dollar since the increase in the policy rate. The local currency recorded all-time low of Rs188.18 to the dollar on April 07, 2022.

The SBP noted that the recent developments necessitated a strong and proactive policy response.

Accordingly, the Monetary Policy Committee (MPC) decided at its emergency meeting today, to raise the policy rate by 250 basis points to 12.25 percent.

READ MORE: Rupee rebounds sharply on massive interest rate hike

This increases forward-looking real interest rates (defined as the policy rate less expected inflation) to mildly positive territory. The MPC was of the view that this action would help to safeguard external and price stability.

The MPC also noted that SBP is in the process of taking further actions to reduce pressures on inflation and the current account, namely an increase in the interest rate on the export refinance scheme (EFS) and widening the set of import items subject to cash margin requirements. These items are mostly finished goods including luxury items and exclude raw materials.

The announcement of these measures is expected soon and will complement the action taken by the MPC on interest rates.

READ MORE: PKR witnesses record single day fall to dollar

KARACHI: The Pakistan Rupee (PKR) made recovery against the dollar for third consecutive day on Tuesday since the massive increase in key policy rate on April 07, 2022.

The rupee on Tuesday gained 91 paisas to close at Rs182.02 to the dollar from previous day’s closing of Rs182.93 in the interbank foreign exchange market.

READ MORE: Rupee recovers sharply; dollar eases to Rs182.93

The State Bank of Pakistan (SBP) on April 07, 2022 issued monetary policy statement to increase the policy rate by 250 basis points to 12.25 per cent from 9.75 per cent. The policy rate was enhanced in an emergent meeting instead of a scheduled meeting.

The rupee recovered around Rs6.16 against the dollar since the increase in the policy rate. The local currency recorded all-time low of Rs188.18 to the dollar on April 07, 2022.

READ MORE: Rupee rebounds sharply on massive interest rate hike

The SBP noted that the recent developments necessitated a strong and proactive policy response.

Accordingly, the Monetary Policy Committee (MPC) decided at its emergency meeting today, to raise the policy rate by 250 basis points to 12.25 percent.

This increases forward-looking real interest rates (defined as the policy rate less expected inflation) to mildly positive territory. The MPC was of the view that this action would help to safeguard external and price stability.

READ MORE: PKR witnesses record single day fall to dollar

The MPC also noted that SBP is in the process of taking further actions to reduce pressures on inflation and the current account, namely an increase in the interest rate on the export refinance scheme (EFS) and widening the set of import items subject to cash margin requirements. These items are mostly finished goods including luxury items and exclude raw materials.

The announcement of these measures is expected soon and will complement the action taken by the MPC on interest rates.

READ MORE: Dollar tops PKR 186.13 at interbank closing

KARACHI: The Pak Rupee (PKR) on Friday made a single day record recovery of Rs3.50 against dollar following the sharp increase in key policy rate announced a day earlier.

The rupee ended Rs184.68 to the dollar from last day’s closing of Rs188.18, which is the highest closing of dollar, in the interbank foreign exchange market. The latest recovery in the local unit also broke the dollar gaining spree of 17 days.

READ MORE: PKR witnesses record single day fall to dollar

Currency analysts said that the rupee rebounded after the State Bank of Pakistan (SBP) announced a sharp raise of 250 basis points in key policy rate.

The central bank increased the policy rate to 12.25 per cent from 9.75 per cent for next two months.

READ MORE: Dollar tops PKR 186.13 at interbank closing

The SBP noted that the recent developments necessitated a strong and proactive policy response.

Accordingly, the Monetary Policy Committee (MPC) decided at its emergency meeting today, to raise the policy rate by 250 basis points to 12.25 percent.

READ MORE: Dollar continues record spree against PKR; hits 185.23

This increases forward-looking real interest rates (defined as the policy rate less expected inflation) to mildly positive territory. The MPC was of the view that this action would help to safeguard external and price stability.

The MPC also noted that SBP is in the process of taking further actions to reduce pressures on inflation and the current account, namely an increase in the interest rate on the export refinance scheme (EFS) and widening the set of import items subject to cash margin requirements. These items are mostly finished goods including luxury items and exclude raw materials.

The announcement of these measures is expected soon and will complement the action taken by the MPC on interest rates.

KARACHI: The Pakistan Rupee (PKR) on Thursday witnessed a historic single day fall of Rs2.05 as dollar reached to another record high of Rs188.18 at interbank foreign exchange market.

Currency experts said that the foreign exchange market was remained volatile during the day owing to scheduled repayment of government external debt and political uncertainty after dissolution of national assembly.

READ MORE: Dollar tops PKR 186.13 at interbank closing

The rupee ended Rs188.18 to the dollar as compared with previous day’s closing of Rs186.13 in the interbank foreign exchange market.

The rupee fell non-stop against the dollar for the last 17 trading sessions. The local currency recorded Rs178.51 at interbank closing on March 11, 2022 and since then the dollar’s made gain Rs9.67.

The local unit recorded a decline of Rs30.64 or 19.45 per cent against the dollar since start of the current fiscal year. The rupee was at Rs157.54 to the dollar on June 30, 2021 and fell to Rs188.18 to the dollar on April 07, 2022.

READ MORE: Dollar hits PKR 184.35 in intraday trading

Currency experts attributed the new wave of rupee devaluation to political uncertainty at home and an international conspiracy to regime change in Pakistan.

Many believe that Pakistan was not able to receive funds from international agencies, which resulted in massive fall in foreign exchange reserves in past few weeks.

Pakistan’s foreign exchange reserves have depleted by $2.88 billion in a week to $18.554 billion by week ended March 25, 2022, State Bank of Pakistan (SBP) said on Thursday. The foreign exchange reserves of the country were $21.44 billion by week ended March 18, 2022.

READ MORE: Dollar makes new top at Rs184.09

This is seventh consecutive week when the country’s foreign exchange reserves have witnessed consistent decline. The liquid foreign exchange reserves of Pakistan have declined by $5.167 billion since February 04, 2022, when the reserves were at $23.721 billion.

The ballooning current account deficit escalated the dollar value. Pakistan’s current account deficit ballooned to $12 billion during first eight months (July – February) 2021/2022 against a surplus of $994 million in the corresponding months of the last fiscal year.

Although the current account deficit narrowed to $545 million in February 2022 as compared with the deficit of $2.53 billion in January 2022, scheduled external repayments are still a threat to balance of payment.

READ MORE: Rupee continues falling spree; dollar at Rs183.48

The trade deficit widened by 70 per cent to $35.39 billion during first nine months (July – March) 2021/2022 as compared with the deficit of $20.8 billion in the corresponding months of the last fiscal year.

The exports of the country recorded an increase of 24.67 per cent to $23.3 billion during first nine months of the current fiscal year as compared with $18.7 billion in the same months of the last fiscal year.

Meanwhile, import bill registered an increase of 48.63 per cent to $58.69 billion during July – March 2021/2022 as compared with $39.49 billion in the corresponding period of the last fiscal year.