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Rupee snaps multisession losing streak

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2 years ago

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  • Rupee mostly remains stable in Friday’s trade
  • Hopes of dollar inflows underpin buoyant close.
  • Dollar continues to outshine world currencies.

KARACHI: The rupee Friday closed the session a shade higher versus the US dollar, snapping the multi-day losing streak, mostly on bets of financial assistance from friendly countries and multilateral lenders, dealers said.

According to the State Bank of Pakistan (SBP), the rupee closed at 221.92 after an appreciation of Re0.03 or 0.01% in the interbank market compared to its Thursday’s closing of 221.95 against the dollar. 

The local unit ended at 221.95 per dollar after losing Re0.52 or 0.23% on Wednesday.

Moreover, the dollar has been gaining against major currencies after Federal Reserve Chair Jerome Powell signalled US interest rates will likely peak at a higher level than markets expected. 

On the other hand, the pound sterling sank after the Bank of England raised rates but warned of a “very challenging outlook.”

Analysts said the SBP’s allowing the exchange companies to trade 20% of remittances in the open market will ease pressure on the rupee.

The SBP on Thursday allowed exchange companies to trade 20% of remittances in the open market to ease pressure on the rupee.

Federal Minister for Finance Ishaq Dar earlier this week announced clearance of Letters of Credit (LCs) up to $50,000, which spiked the dollar demand from importers.

Last week, the exchange businesses requested Dar to allow at least half of the remittances to be used by the open market. They expected that the possibility of receiving half of the remittances would lessen the demand for the dollar and lower its rate in the currency market.

“On our request, the governor State Bank of Pakistan has enabled the exchange companies to sell 20% of workers’ remittances to the general public,” said Malik Bostan, chairman of the Exchange Companies Association of Pakistan (ECAP) said in a statement.

Bostan, along with other members of ECAP held a meeting with governor SBP Jameel Ahmad and thanked him for helping exchange companies whenever they face any problem. 

“Due to the low rate of exchange companies, customers are selling in the black market instead of selling to exchange companies as their rate is 10 to 15 rupees more per dollar than exchange companies,” he said.

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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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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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