US dollar touches all-time high at Rs146.25 in open market
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The value of US dollar against rupee on Wednesday touched an all-time high of Rs146.25 in the open market, DawnNewsTV reported.
The greenback's value increased by Rs2.25 to reach an all-time high amid speculations that the local currency will depreciate further.
Read more: Pakistan reaches agreement with IMF, to receive $6 billion over 3 years
Earlier on Monday, the US dollar had gained Rs2 against the rupee in the open market as there were strong speculations that rupee will depreciate significantly after signing of a bailout agreement with the International Monetary Fund (IMF).
The IMF spoke of a “market determined exchange rate” in its statement on the programme, and the financial markets have not taken the words very well. Speculation has broken out in the forex markets, with small and large investors looking towards the greenback.
"The potential for higher rate of dollar is visible in the inter-bank money market," a banker was recently quoted as saying.
“Fears of further devaluation as a result of the agreement with the IMF have depressed the currency market and the rupee may lose more against the greenback in the coming days,” Secretary General of Exchange Companies Association of Pakistan Zafar Paracha had said on Monday.
Most of the currency dealers and experts have already expressed their disappointment over the undisclosed conditions agreed between the IMF authorities and the government.
Read more
On DawnNews
Comments (134) Closed
May 15, 2019 04:14pm
With these tried,tested and failed financial experts, we shall continue to drift into the turbulent hot waters. This as a situation that would make Dar and party appear thousand times better.
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May 15, 2019 04:22pm
It will settle at 140.
Mark my words
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May 15, 2019 04:26pm
IMF bail out package effect.
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May 15, 2019 04:38pm
Dollar at its highest rate, all this is courtesy and policies of Nawaz Sharif, Isaq Darr and his business associates. I ask: When will PTI government recover the looted money from NS, SS and AAZ? Don't let them get away with 4% payback silly amnesty scheme!
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May 15, 2019 04:43pm
Expected...
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May 15, 2019 04:43pm
Not surprising. They want a market- determined exchange rate.
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May 15, 2019 04:46pm
Positive side: Good for exports
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May 15, 2019 04:48pm
USD will cross 200 Pak rupees in the next 6 months.
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May 15, 2019 04:51pm
The further devaluation will continue as a result of IMF agreement and may stabilize at around 160.
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May 15, 2019 04:51pm
It should touch 180 before it stabilizes.
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May 15, 2019 04:55pm
160 is promised to imf
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May 15, 2019 05:00pm
What a Sad Saga of Pakistan
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May 15, 2019 05:03pm
Imran Khan becomes PM on 18th August 2018, 1USD = PKR 123
Now 1USD = PKR 146
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May 15, 2019 05:07pm
Both France an Turkey, besides few other countries, replaced their old currencies by new one and that stabilized their currencies and helped improve their economy. My recommendation is to come up with new currency and assign one new rupee equal to current Rs.100/-. Easy to count and no Rs 500/- or higher value currency. It may not be as successful in Pakistan as it has been in France or Turkey, but surely it will improve the situation.
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May 15, 2019 05:08pm
By the end of this year, it will 250....sad....
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May 15, 2019 05:11pm
Congratulations. Post negotiations with IMF dollar will reach 200 ,inflation 15%, petrol and diesel to be expensive.
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May 15, 2019 05:13pm
Lots of pain for the common man. Inflation is going to spiral out of control soon
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May 15, 2019 05:13pm
It's already down back to 144...
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May 15, 2019 05:17pm
@SM, Yeah, blame everything on IK. Including the trade deficit, foreign exchange reserve, empty State Bank and dearth of Tax collection - that last PPP and PML-N government combined could not fix it.
If the Dollar hits 200 in four years, when IK may not be PM,. who will you blame then? A month-old new government??
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May 15, 2019 05:19pm
Speculators having a field day. Common man will suffer going forward. By the time of the next elections rupee may score a double century
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May 15, 2019 05:22pm
He had promised a Naya Pakistan but he didnt say it was going to be better than the old one.
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May 15, 2019 05:24pm
@Swiss Neutral, *"Positive side: Good for exports"*
What exports???
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May 15, 2019 05:26pm
@Ajay,
How did you know that?
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May 15, 2019 05:27pm
"... the undisclosed conditions agreed between the IMF authorities and the government." Wasn't the same Imran Khan ranting against the previous government over the undisclosed conditions of the CPEC? There is no Naya in Pakistan.
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May 15, 2019 05:29pm
@Swiss Neutral, Positive side: Good for exports
Export!? What is That?
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May 15, 2019 05:30pm
Dollar is on a one way trip up. Don't see it stopping before Rs.170 in the next 3 months.
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May 15, 2019 05:31pm
2 weeks ago I was in Pakistan, the exchange rate was Rs 142/USD. If at this rate it keeps on going up, the cost of imported goods will be too high, especially medicine and other essentials
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May 15, 2019 05:36pm
CPEC completion will it back to $1 = 1 Rupee.
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May 15, 2019 05:40pm
The weak economy of Pakistan, of lately has come under tremendous pressure recently due to uncertainties created in the financial market in lieu of signing of IMF bailout agreement. The stock exchange turmoil resulting in across the board fast decline of its index during recent days, further added on to already existing jitteriness and panic, mainly because of IMF conditionality of allowing free float of PKR against the dollar.
The Pakistan’s currency is more less following the recent similar pattern of events in Egypt, which taking $12 billion IMF loan agreed to a condition of free float of its currency against the dollar. As a consequence, it is no surprise that as Egyptian Pound devalued by 50%, PKR by following suit already suffering 36% devaluation, reaches devaluation goal of 50% by July,2019, when terms & conditions of the IMF agreement come into play under the stewardship of new GSBP, having successfully done the same in Egypt during his past assignment as IMF representative.
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May 15, 2019 05:41pm
Game changed by $60 Billion CPEC. What would have been the situation if $60 billion had not come from China?
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May 15, 2019 05:44pm
It's great achievement of PM Khan
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May 15, 2019 05:45pm
@Habib A. Zuberi, "Both France an Turkey, besides few other countries, replaced their old currencies by new one and that stabilized their currencies and helped improve their economy. My recommendation is to come up with new currency and assign one new rupee equal to current Rs.100/-. Easy to count and no Rs 500/- or higher value currency. It may not be as successful in Pakistan as it has been in France or Turkey, but surely it will improve the situation."
If you buy 1 kg of apples then you may get 4 apples when you choose the big ones and maybe 6 when you choose the smaller ones. You still get 1 kg. You don't get 1.5 kg.
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May 15, 2019 05:48pm
Pakistan has paid back the principal amount on its foreign debt, but it has doubled, tripled , and quadrupled over the years due to the many devaluations. The IMF is run on the lines of a commercial bank. It should not impose conditions on its loans except requiring that they be paid back with interest and on time.
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May 15, 2019 05:53pm
Congrats to all overseas Pakistani People.
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May 15, 2019 05:55pm
@Swiss Neutral, For that you should produce goods worth for export at competitive rates.
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May 15, 2019 06:00pm
More burden....
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May 15, 2019 06:01pm
How does the rupee stand against other world currencies?
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May 15, 2019 06:02pm
@Shoaib, ..... A sad saga many years in the making.
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May 15, 2019 06:37pm
While it decreased by 2 in india
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May 15, 2019 06:39pm
@Ahmed, so now you expect people all over the world for corruption in Pakistan?
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May 15, 2019 06:41pm
Now we need more loans to cover for this.
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May 15, 2019 06:41pm
At this point in time, it’s not a speculation that the Rupee will depreciate, it’s inevitable. Taking loans in Billions, you think that alone will strengthen the value of Rupee?
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May 15, 2019 06:44pm
@MirzaCanada, All-knowing eye
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May 15, 2019 06:46pm
With the IMF bailout it will touch 160/S1 before Sep 30, 2019. It appears to be one of the conditions.
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May 15, 2019 06:49pm
Bad news has a bright side for the expats who send their hard earned money back home to the family.
According to latest IMF agreement, the rupee is going to fall further by 20%. So the rupee will be 165-170 in few months.
So if you are an expat like most of us who is sending $$ home to the loved one, wait till the rupee is 165-170 before you send money home.
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May 15, 2019 06:57pm
Bring back Nawaz, he will streamline , most discredited people perform well in crisis.
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May 15, 2019 07:06pm
IMF gift ???
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May 15, 2019 07:09pm
Thank you Imran Khan !
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May 15, 2019 07:11pm
Where is Chartered Accountant Ishaq Dar? Whatever he was and to which political party he belonged to is irrelevant, at least he kept the value of U.S. dollar under Pk. Rs. 100/- throughout his tenure as the Finance Minister of the Islamic Republic of Pakistan, for which credit must be given when and where the credit is due!
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May 15, 2019 07:19pm
@Swiss Neutral, what exports?
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May 15, 2019 07:20pm
Still much strong currency far better than iran.
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May 15, 2019 07:21pm
Stock market destroyed
Forex destroyed
GDP growth destroyed
Welcome to Naya Pakistan
Next election slogan will be
Purana Pakistan
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May 15, 2019 07:35pm
@Tabdeeli, ..bright side for the expats.. send.. money back home.. ..going to fall further by 20%..wait till the rupee is 165-170 before you send money..
Expats remit at PKR 165, it may further go down to 190 vs USD. PKR depreciation is already stoking hyper-inflation, not good for families.
Better send money on need basis only.
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May 15, 2019 07:42pm
@Swiss Neutral, "Positive side: Good for exports"
PKR depreciation is good ONLY if it do not cause imported-inflation.
Else country becomes in-competitive, which is Pak case now.
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May 15, 2019 07:44pm
Now no limit looking to huge debt burden.
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May 15, 2019 07:46pm
So easy to manipulate the market...time to crack down on FX houses!
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May 15, 2019 08:01pm
Tendency of holding remittances and dollars retention by exporters are going to hit foreign exchange inflow in another 1-2 months till the time dust settles with regard to IMF condition on exchange rate. Traders are expecting it to reach in the band of 170-175 in the short term.
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May 15, 2019 08:07pm
There is no point in worrying about the dollar exchange rate. What one should worry is about decreasing exports and increasing imports.
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May 15, 2019 08:11pm
@Surya Kant , No. The regional tensions in Gulf , raised the Oil Prices. And it’s a geopolitical ramifications. The Indian Rupee too under pressure, Pak not alone.
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May 15, 2019 08:22pm
This is the 6 billion dollar run. Pak govt has given hundreds of statements on successful deal with IMF in past 9 months but the actual changes gave practically just started, wait for the finals!!
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May 15, 2019 08:33pm
@mady, Currency appreciates only when rest of the world want to buy your products and services and also when your imports are less than your exports. In a free trade scenario the depreciation of your currency should fix trade deficit in few years without any invervention. Just free trade with India and China should fix our trade deficit under current Exchange rate but there is not free trade. The market fundamentals work in favor of Pakistan but by somehow our politicians and buerocrates never let the the private sector to grow properly - electricity shortage, gas shortage, corruption, water shortage, skilled labor shortage, lacking roads, railway .... list is long. Help IK to fix the economy.
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May 15, 2019 08:33pm
Very important for people to not panic and keep believing in recovery. Even a little indication of panic will cause people to take actions which can irreversibly and permanently damage the economy beyond repair
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May 15, 2019 08:35pm
The dollar value is determined by the rich who can afford to buy them to hoard their illegal income and not the poor masses who can hardly afford to buy one dollar. One wonder how many dollars were brought by the opposition rich people to create rate instability.
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May 15, 2019 08:36pm
Naya Pakistan
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May 15, 2019 08:36pm
@Rahul, whatever pakistan exports.
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May 15, 2019 08:41pm
@Umair, yes you are Federal Reserves chairman
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May 15, 2019 08:41pm
@M. Saeed, you need a handsome PM or policy.
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May 15, 2019 08:42pm
it will freefal to over 180
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May 15, 2019 08:51pm
Doesn't matter at all. It will increase further, it has to. This is all because the PTI government is not creating an artificial value for the Pak Rupee which the previous government did.
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May 15, 2019 08:57pm
Nothing But Shame:(
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May 15, 2019 09:06pm
9 months progress dollar 146!
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May 15, 2019 09:10pm
CPEC is still not complete. Just wait for a few years and see. US dollar will be irrelevant then.
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May 15, 2019 09:13pm
Good for overseas citizens , bad for economy
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May 15, 2019 09:13pm
CPEC projects really yielding the benefits now to the common people of Pakistan.
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May 15, 2019 09:28pm
Indian Rupee is at about 69-70 to one USD, whereas PKR is now about 145 to one USD. Didn't they start out at about the same exchange rate on partition, at about 5 to a dollar?
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May 15, 2019 09:55pm
USD surged against PKR on mere speculation? Somebody or a cartel is playing with PKR to fill their pockets it seems.
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May 15, 2019 10:08pm
Serious impact on inflation is imminent. You will have to pay costlier $ for import of petroleum product, which directly impact market price of commodities.
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May 15, 2019 10:10pm
@M Saeed you are also a fail and tested individual or else the system which we had in Pakistan would have worked. How many of you follow any rules and pay your due share towards your country
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May 15, 2019 10:15pm
Once the IMF Loan is given, the country has to take actions to implement IMF conditions under which the Loan was given. To do that, the Rupee will surely decline further against the Dollar. How much lower would it go against the Dollar is any one's guess at this stage.Only till recently the Rupee was equivalent to 100 Rupees to a Dollar and now it is at 146?
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May 15, 2019 10:16pm
Blame Trump!!!
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May 15, 2019 10:17pm
@Rajesh, It might as well crash then. Let it Free Fall and find it's place.
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May 15, 2019 10:20pm
In couple of months pkr is going to score double century
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May 15, 2019 10:32pm
@Swiss Neutral,
What exports? The problem with Pakistani economy is that it does not have significant exports because it makes very few world class competitive products.
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May 15, 2019 10:32pm
@Umair, 140 is still too high...needs to be at 100.
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May 15, 2019 10:34pm
There was a report that Russia, China, Turkey and India don't want to use US doller for there trade so it's useful for Pakistan to join them...
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May 15, 2019 10:41pm
Every generation should go through some or other difficult to get better future Pakistan going through it, but once CPEC complete there will recover abundantly
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May 15, 2019 10:52pm
Pakistan gdp shrinked from 330 billion dollars to 277 billion dollars. According to imf world bank Asian development bank, it will continue to grow at only 2.5 - 3 percent for next 3 years. Means it'll take another 3-4 years to reach the same place (I. E. 330 billion dollars). Isn't?
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May 15, 2019 10:53pm
@Umair, the government departments are working at 180 for the budget
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May 15, 2019 10:55pm
@Ajay, lucky if it stabilizes at 160. Interdepartmental working for 180 by end 2019
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May 15, 2019 10:56pm
@Rabba, 180 by end 2019
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May 15, 2019 11:15pm
@Harish Chandra, Pakistan has progressed faster than India..
..
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May 15, 2019 11:47pm
this is progress
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May 16, 2019 12:14am
PNR is now weakest in south asia.INR=2 PNR .Foreign tours will be costly but foreign tourists will enjoy more in Pakistan as things will be cheaper .This will bring more foreign currency and improve economy Pakistan tourism board should initiate action
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May 16, 2019 12:34am
There is one car (Pakistan) and too many drivers (political parties). Some drivers wants to drive in straight lane, some wants to turn on right hand side road, some wants to turn on left hand side road and majority of them wants to put a reverse gear.
We hand enough experiences in which we already lost former East Pakistan in 1971.
How many more experiences do we want more from these drivers? Is there any limit or not?
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May 16, 2019 12:48am
it is because the dollar is not available in market(some hawala and hundi people have just stopped traiding) and those exchangers who has it are selling on higher prices. It has become more like a commodity now a days. Its an artificial hike and will go down. Last weak i checked it was 142.2 PKR and I remember around 20 days ago it was also sold on 146 in Lahore
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May 16, 2019 12:57am
Double century very soon
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May 16, 2019 01:03am
@Anti-Corruption_Pakistani, - Let me answer your question about when PTI will get back looted money? Answer is ‘Never’. Reason surely there was corruption but not at the level claimed by IK but there is no proof so no chance of getting any money.
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May 16, 2019 01:06am
@Anti-Corruption_Pakistani, the last govt was not great but i think the current state is down to the incompetence of the current govt.. its been 8 months you can blame past loans which are not paid on past govt but the current situation of economy, revenue collection, ruppee value is all own to pti.
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May 16, 2019 01:10am
@Mahmood, i would if when the new govt comes the ruppee is at 170 and then goes to 200..
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May 16, 2019 01:49am
Real value of PKR is 200 for 1 USD, this government is also artificially supporting currency but it will work until government continue to pour USD in market, after exhaustion Market will decide real value
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May 16, 2019 01:54am
@Satya Jeet, You need to take a basic high school economics course. The $60.00 billion you claim did not "come" to Pakistan. CPEC money is allocated on project-based, not money poured in as you envision.
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May 16, 2019 02:33am
This is before IMF deal details not disclosed.
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May 16, 2019 02:34am
Now this looks like a cryptocurrency
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May 16, 2019 02:49am
@M. Saeed, Dar will appear better? He is thousand times better.
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May 16, 2019 02:57am
@SM,
DAR had used borrowed money to support the PKR. Such support ends when you run out of money!
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May 16, 2019 03:11am
Get ready for 200 PKR
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May 16, 2019 03:13am
@ Iqbal, Thats the issue, but more sever issue is, if our people didn't do export how their par capital income is more then India and Bangladesh, simple answer high paid government jobs, so no matter what taxes you implement if government salaries didn't took down to private sector level, nothing will change.
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May 16, 2019 03:25am
Already in Karachi the market is selling at 150 per dollar
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May 16, 2019 04:15am
Come on! Our economic, administrative and political systems aren't suited to a country as large as ours. In my own conscious lifetime I remember it being around 50. The fact that it is 200% higher today should be an indication that the problem is the system. Not any one cog in the system.
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May 16, 2019 05:19am
@Rizwan, "Pakistan gdp shrinked from 330 billion dollars to 277 billion dollars. According to imf world bank Asian development bank, it will continue to grow at only 2.5 - 3 percent for next 3 years. Means it'll take another 3-4 years to reach the same place (I. E. 330 billion dollars). Isn't?"
That is if the rupee doesn't depreciate further by then.
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May 16, 2019 05:33am
@Umair, 170 is my take.
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May 16, 2019 05:46am
@Umair, obviously you know the best.
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May 16, 2019 05:50am
@Rajesh, Taking wild guesses makes no sense to me. Sorry but do you have any theory on the basis of which you say so ? I urge readers not to create unnecessary scare or even make atrocious claims without backing.
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May 16, 2019 05:56am
It is a crime for this government to continue ruling. They do not have the expertise to run a country. All they do is repeat the same things again and again.
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May 16, 2019 06:17am
@MirzaCanada
@Ajay, How did you know that?
Dear Mirza, i wrote it "may stabilize" that is only my expectation and assessment.
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May 16, 2019 07:10am
In 1985 , India was in a worse situation with dollar reserve dropping to 1billion and no money to formulate a budget and ensuing political instability.PM PVN Rao and FM Manmohan Singh steered the ship thereafter from 1990. Today, India's reserves are 400 plus billion dollars. So, it's doable in Pakistan too , just that right people have to be at the right places with the right policies.
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May 16, 2019 07:33am
@Tabdeeli, The fear is what if the economy goes out of control ?? The $$ we already sent has already lost value and so has the investments in Pakistan thus far. So it does not help anyone to see the economy slump.
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May 16, 2019 07:34am
This will reach 200 mark
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May 16, 2019 08:02am
USD is back to `144 but availibility in the market is ZERO.
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May 16, 2019 08:09am
@Ajay, And what birdy informed you of that news?
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May 16, 2019 08:09am
@Rajesh, You could only hope and wish.
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May 16, 2019 08:11am
Thank you to all the economists and fortune tellers for their input here, we could have all done without your brainy future value of the Pakistani Rupee.
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May 16, 2019 08:17am
it will settle @ 150
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May 16, 2019 08:35am
This is like a long dark tunnel with nolight at the end.
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May 16, 2019 08:38am
good time to invest in dollars
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May 16, 2019 10:21am
Pak current a/c deficit has been reported at 1billion$ a MONTH...in what way will IMF 2 billion$ per YEAR help out Pak economy while ordinary pple suffer the massive cost & price hikes?...
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May 16, 2019 12:48pm
@Umair, speculations do not sustain for long time , sure it will go back on 140 .
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May 16, 2019 12:49pm
IMF
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May 16, 2019 09:19pm
@Kanakasabhai, Pakistan has to survive until then.
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May 16, 2019 10:20pm
Keep printing and become broke like ussr.
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May 17, 2019 04:39am
Govt needs to make imf pact public . I thought IK was for open govt.
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May 17, 2019 04:57am
@SM, Imran Khan sahib Zindabad!
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May 17, 2019 08:12am
@LAHORI KID "Rajesh, You could only hope and wish" - You probably said the same thing to him 6 months ago when he predicted that PKR would be at 150 vs USD.
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May 17, 2019 10:35am
unproductive & excessive expenditures lead to this
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