Connect with us

Hi, what are you looking for?

Online Business Success

Rupee loses 31 paisas against US dollar


A currency dealer can be seen counting Rs500 notes. — AFP/File
A currency dealer can be seen counting Rs500 notes. — AFP/File
  • With a fresh fall of 0.19%, the currency closed at Rs170.79 against the US dollar in the inter-bank market on Monday.
  • Analysts say direction of local currency will depend on how IMF negotiations evolve next week.
  • “The situation in Afghanistan is adding fuel to the already depreciating currency,” says Samiullah Tariq.

KARACHI: Pakistani currency dropped to an all-time low of Rs170.79 against the US dollar in the inter-bank market on Monday.

With a fresh fall of 31 paisas or 0.19%, the local currency closed at Rs170.79 against the US currency.

Speaking to Geo.tv, Pakistan-Kuwait Investment Company’s Head of Research Samiullah Tariq said that the Pakistani currency is losing its value because of the demand-supply crisis.

It is pertinent to mention here that the dollar demand from importers ballooned due to increased import payments. Higher current account deficit and a spike in international oil prices also continued to put pressure on the local unit.

“The situation in Afghanistan is adding fuel to the already depreciating currency,” Tariq added.

The recent bill moved by a group of US Senators, which is seeking to impose sanctions on the Afghan Taliban and entities providing support for them including Pakistan, is affecting sentiment on the rupee.

“The central bank is not intervening and is expected not to intervene, going forward,” he said.

Financial experts expect the rupee to remain stable in the near term as market players are expected to take limited positions ahead of forthcoming talks with the International Monetary Fund on the sixth review of the $6 billion Extended Fund Facility.

Advertisement. Scroll to continue reading.

“We may have a sort of a breather in the foreign exchange market over the next week as the steps were taken by the central bank will slow down imports and subsequently demand the greenback,” said a foreign exchange trader.

He added that the direction of the local currency will depend on how the IMF negotiations evolve next week.

“Most players [investors and importers] are unlikely to build long positions during IMF talks.”

However, Tariq said that the direction of currency will be prominent during a period of two weeks.

The staff-level discussions between Pakistan and the IMF are to begin today, while Finance Minister Shaukat Tarin is scheduled to attend annual meetings of the World Bank and the IMF from October 11-17 in Washington.

Successful negotiations will pave the way for releasing $1 billion disbursements from the IMF and also help support the rupee in the months ahead.



Source link

Advertisement. Scroll to continue reading.
Click to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Advertisement

Latest

Top Stories

Proof-of-work (POW) blockchain networks were all the rage in the early days of cryptocurrency when Bitcoin (BTC) set the standard for security and other...

Top Stories

The bulls are on the march again and this time they’ve set their sights on a new all-time high for Bitcoin (BTC) price which...

Technology

Stock trading platform Robinhood has disclosed a data breach after their systems were hacked and a threat actor gained access to the personal information...

Social Media

Are you looking for ways to maximize your Instagram efforts this holiday season? Instagram has provided some quick tips to help, via Lolly Hu,...

Top Stories

Bitcoin (BTC) is close to making a new all-time high and Ether (ETH) finally soared to hit a new high at $4,800. This pushed...

Loan And Finance

“We have been observing or realizing for a while now that within the scientific community, including medical research, natural research, and environmental economic research,...

Top Stories

The United States Department of the Treasury has announced it will impose sanctions on the cryptocurrency exchange Chatex and its support network for allegedly...

Online Business Success

— Twitter Social media users are widely sharing “new designs” of Pakistani currency notes and are claiming that they would be rolled out soon....

Advertisement

You May Also Like

SEO Guide

Want to rank in Google image search? Images that you use as a featured images when writing a post actually appear on Google Images...

Technology

Sonos is one of the most popular wireless speaker brands in the world, and for good reason – its range of portable Bluetooth speakers,...

Online Business Success

File photo The Economist Intelligence Unit (EIU) has said that inflation will remain high in Pakistan for the next six months and the rupee...

Blogging

In this post, I will discuss the top ten profitable blogging niches ideas for Adsense approval and high traffic. whether you use Blogger or...

Advertisement