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.

KARACHI: The US dollar ended at Pakistan Rupee (PKR) 186.13, a new historic high of the foreign currency, at closing of interbank foreign exchange market on Wednesday.

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KARACHI: The US dollar crossed the level of 186 to Pakistan Rupee (PKR) during midday trading at interbank foreign exchange market on Wednesday.

The dollar/rupee parity is at Rs186.10 to the dollar. The foreign currency has gained 87 paisas so far when compared with last day’s closing of Rs185.23.

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

The rupee fell non-stop against the dollar for the last 15 trading sessions. The local currency recorded Rs178.51 at interbank closing on March 11, 2022 and since then the dollar’s made gain Rs6.72 at the closing.

The local unit recorded a decline of Rs27.69 or 17.58 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 Rs185.23 to the dollar on April 05, 2022.

READ MORE: Dollar makes new top at Rs184.09

The recent fall may be attributed to significant fall to foreign exchange reserves. 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.

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.

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

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 falls to new historic low to dollar at 182.64

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.