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Rupee completes one-month winning streak against US dollar

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1 year ago

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  • Military-backed crackdown helped local currency to gain against dollar.
  • On Sept 5, Pakistani rupee tumbled to 307.10 against the dollar.
  • Rupee expected to strengthen to 280 to the dollar: analyst.

The Pakistan rupee’s winning streak against the US dollar has completed one month today (Thursday) with the local currency gaining 23.50 against the greenback since September 5 in the interbank market — thanks to the military-backed crackdown against currency smugglers.

The local currency is hovering at 283.60 per dollar in the interbank market today, gaining further 1.8 against its counterpart.

On September 5, the Pakistani rupee tumbled to 307.10 against the dollar in the interbank market. Since then, the Pakistani rupee has been on a recovery after the military-backed crackdown launched a crackdown on currency smugglers, hoarders, and speculators.

A day earlier, the rupee closed at 284.68 to the dollar, 0.37% stronger than Tuesday’s close of 285.72.

According to analysts, the rupee kept increasing as a result of a decline in the black market’s demand for dollars.

“In my view, PKR appreciated against the dollar as illegal demand vanished after the crackdown,” said Samiullah Tariq, the head of research at Pak-Kuwait Investment Company.

In the days to come, Tariq thinks that the rupee would strengthen to 280 to the dollar. Mustafa Mustansir, the head of research at Taurus Securities said the main reason for the rise in the value of the rupee is the crackdown on the grey markets and illegal hoarding of dollars.

“Plus, we believe that the illegal flow of dollars to Afghanistan has also stopped,” Mustansir said. “Further, the restructuring of the exchange companies sector by the SBP has also had a significant impact. Overall, these measures have led to heavy selling of dollars in the open market. I think the rally will continue,” he added.

The rupee’s near-term outlook is expected to be positive, but its medium-term future course will be determined by the state of the country’s economic fundamentals, especially the conclusion of the International Monetary Fund’s review of the stand-by arrangement (SBA) and the position of the foreign exchange reserves. In late October or early November 2023, there will likely be an IMF review.

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In interbank trade, the Pakistani rupee beats the US dollar.

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6 days ago

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In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

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Phase II of CPEC: China-Pakistan Partnership Enters a New Era

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1 week ago

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The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.

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Business

The inflation rate in Pakistan dropped to its lowest level.

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1 week ago

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On December 2, core inflation as determined by the Consumer Price Index (CPI) significantly slowed, falling to 4.9% in November 2024 from 7.2 percent in October 2024.

The CPI-based inflation rate for the same month last year (November 2023) was 29.2%, according to PBS data.

Compared to a 1.2% gain in the prior month, it increased by 0.5% month over month in November 2024.

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