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Rupee remains stable versus US dollar

Published

2 years ago

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  • Rupee settles at 223.95 against US dollar in interbank market.
  • Local unit lost value in last few sessions but remained within 223 level.
  • PBC says expecting rupee to defy gravity is “unrealistic”.

KARACHI: The Pakistan’s rupee fell marginally against the US dollar on Monday, depreciating Re0.01 in the interbank market.

The rupee settled at 223.95 against the US dollar compared to its Friday close of 223.94 in the interbank market, according to the State Bank of Pakistan (SBP).

The rupee lost value in the last few sessions but remained within the 223 level as restrictions imposed over import payments, opening of letters of credit, and foreign-currency carrying limits on travellers meant the currency stayed administratively under control.

Analysts also believe it was a result of negative sentiment that was fanned by the shrinking dollar stash of the country.

However, the local unit is likely to bounce back later this week on expected inflows from the Asian Infrastructure Investment Bank (AIIB).

The Pakistan Business Council (PBC) in a note posted on their Twitter handle stated that expecting the Pakistani rupee to defy gravity (in view of its depleting forex position) is unrealistic.

“Bolstering rupee through administrative controls renders exports less competitive and imports (even curbed), cheaper. Where is the sense in this when we want the reverse — higher exports?” it said.

Tresmark last week’s client note stated that the State Bank of Pakistan (SBP) is expecting external flows from multilateral (such as World Bank, Asian Development Bank, AIIB and others), bilateral and other sources.

However, contrary to the dominant opinion, the platform for treasury markets said that despite some positives, the rupee weakening doesn’t seem to end soon.

The rupee/dollar parity could test previous highs if the pressure on the forex reserves is not eased, it noted.

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Business

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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Business

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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