Tag: US Dollar

KARACHI: The US dollar made a sharp gain against the Pakistan Rupee (PKR) to reach Rs186 during midday trading at interbank foreign exchange market.

The dollar gained around Rs1.56 to reach Rs186 during the midday trading against the last day’s closing of Rs184.44 in the interbank foreign exchange market.

READ MORE: Dollar climbs up to Rs184.44 at interbank closing

Currency analysts said that due to import and external debt payments the local currency was under severe pressure.

The recent measures of the State Bank of Pakistan (SBP), including raising the key policy rate by 2.5 per cent, have failed to support the local currency.

The fresh wave of rupee depreciation may be attributed to higher demand of the foreign currency for external debt repayment.

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

Previously, 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.

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

READ MORE: Dollar plummets against PKR for seven consecutive days

The appreciation in dollar value 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.

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.

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

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

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.

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

KARACHI: The Pakistan Rupee (PKR) fell sharply against the dollar on Tuesday and ended at Rs184.44 in the interbank foreign exchange market.

The local currency fell by Rs1.9 to end at Rs184.44 to the dollar from previous day’s closing of Rs182.54 in the interbank foreign exchange market.

It was second straight day when the rupee declined sharply against the greenback. The local currency deteriorated by Rs2.89 against the dollar.

The fresh wave of rupee depreciation may be attributed to higher demand of the foreign currency for external debt repayment.

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

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

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.

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

READ MORE: Dollar plummets against PKR for seven consecutive days

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.

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.

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

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

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.

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

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