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Rupee slide slows down due to current account numbers

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2 years ago

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  • Rupee closes at 220.95 after losing 0.03% in interbank market.
  • Analyst says rupee’s outlook has improved significantly.
  • Since the start of fiscal year 2022-23, rupee has lost Rs16.1.

KARACHI: The downward slide of the Pakistani rupee slowed on Thursday as the encouraging current account deficit number has lent some support to the local unit.

According to the State Bank of Pakistan (SBP), the local currency closed at Rs220.95 in the interbank market after depreciating registering a meagre loss of 0.03% against the greenback compared to Wednesday’s close of 220.88.

The market took positive cues from the current account deficit released a day earlier, which narrowed 37% to $2.2 billion in the first quarter of the current fiscal year due to lower imports and a rise in exports.

Commenting on the rupee’s movement, Pakistan-Kuwait Head of Research Samiullah Tariq said better than expected current account deficit number has improved the sentiment. “Slight movement was exhibited by the rupee,” he said.

Regarding the outlook, Tariq said it had improved significantly with a lower current account deficit number.

Since the start of the fiscal year 2022-23, the rupee has lost Rs16.1 or 7.85% against the US currency — which leaves its imprint on every corner of the global economy as it is the currency in which vital raw materials are bought and sold.

Dar rules out need for ‘steps’ to support rupee

A day earlier, Finance Minister Ishaq Dar ruled out the need for any particular supportive measures for the rupee, stoking optimism among traders that the ‘Darnomics’ will soon be able to crack the country’s monetary conundrum.

“The rupee has been heavily undervalued,” Dar said during an interview with Bloomberg in Washington, where he has been attending annual meetings of the International Monetary Fund (IMF) and the World Bank.

“It is due to speculation — and some players in the market have been responsible for that,” he said.

“I thank those players in the market who have realised that that game at the cost of the national currency will not continue,” he asserted while highlighting that the exchange rate stabilised after traders learned he would take office.

Responding to a query if he was planning to take any “specific steps” to boost the rupee, he said: “I don’t think so. We don’t have the luxury of physically spending foreign exchange — it’s very scarce at the moment.”

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SIFC Promotes International Honey Trade: Malaysia Becomes an Export Destination for KP 60,000 Honey Farms

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The successful arrival of Khyber Pakhtunkhwa’s first batch of SIDR honey in Malaysia is a major turning point for Pakistan’s honey sector.

The special investment facilitation council is helping to raise the profile of Pakistan’s agricultural exports internationally.

The Ministry of Commerce is dedicated to increasing Pakistan’s honey exports internationally, and the Pakistani high commission in Kuala Lumpur has been instrumental in fostering collaborations between Malaysian and Pakistani companies.

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The KSE-100 is getting closer to the 100,000 level thanks to bullish momentum.

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At 98,164.24 points, the benchmark KSE-100 Index is just 1,800 points away from the much-anticipated 100,000 level and is approaching a historic milestone.

Favorable macroeconomic indicators and high investor confidence have propelled the index’s bullish momentum as of 9:47 a.m. today.

The KSE-100 had a significant increase of 469.84 points, or 0.48%, on Friday, closing at 97,798.23 points. Market optimism was indicated by the index’s quick spike to an intraday high of 99,623.03 points.

Analysts have increased their estimates, predicting that by the end of 2025, the KSE-100 might rise to 120,000. Continued improvements in macroeconomic conditions, such as declining bond yields, are anticipated to be the main drivers of this spike since they are bringing more liquidity to the equities market.

Following the drop in bond yields, mutual funds have made about $132 million in investments in Pakistani stocks since January 2024. This influx of funds is considered a favorable indicator of investor sentiment.

The market has also risen as a result of the State Bank of Pakistan’s decision to reduce interest rates by a total of 700 basis points, from 22% in May 2024 to 15% now.

The All-Share Index, which measures the overall market, also showed robust gains. With a net increase of 280.51 points, or 0.44%, it was at 62,376.87 points. Expectations of additional growth in the equity market are being bolstered by this encouraging trend.

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Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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5 days ago

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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