Rupee strengthens as dollar continues to shed value
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Falling demand coupled with a surge in supply pushed dollar's price in open market on Monday to Rs149.50 — down half a rupee from the Rs150 rate in the preceding session.
In the interbank market, the greenback traded at Rs149.60 as compared to Rs150.90 in the last session, posting a decline of Rs1.30.
According to currency dealers, overseas Pakistanis are sending additional amounts of remittance ahead of Eidul Fitr — boosting the supply of dollars in the open market.
The second major reason behind the falling value of the dollar, as per the dealers, was the shrinking demand as the State Bank of Pakistan (SBP) has tightened the rules and regulation for opening letters of credit (LC) for import.
Zafar Paracha, the Exchange Companies Association of Pakistan's secretary general, told DawnNewsTV that the greenback could lose its value by another three to four rupees, if the prevailing trend continues.
The rupee’s erosion appears to have ceased due to the excess supply of dollars in the open market amid seasonal effect of Ramazan followed by disappearing interest from buyers.
“The inflow is high while the demand is almost at zero level. I believe currency dealers will deposit up to $5 million surplus per day in the banks till Eid,” Zafar Paracha had said recently.
Buyers have already lost interest in dollar after rupee gained Rs4 against the greenback in the last week.
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On DawnNews
Comments (44) Closed
May 27, 2019 05:57pm
New Rate can be "1usd=142 pkr" in couple of weeks
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May 27, 2019 06:17pm
Tell me when @ Rs 100= 1 Dollar
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May 27, 2019 06:17pm
Good, lets hope this trend continues forever.
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May 27, 2019 06:25pm
@ExMohajirinUK,
*Good, lets hope this trend continues forever.*
Seriously? Any clue how macro-economics works?
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May 27, 2019 06:33pm
Good to know. So no need to increase petrol prices after huge increase in last two months.
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May 27, 2019 06:47pm
increase by 10 & then reduce by 4, people will happy & we are ready for next increment...
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May 27, 2019 06:55pm
Great news !!!!
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May 27, 2019 07:00pm
It can further fall on more remittances by ‘ overseas Pakistanis ‘ and it can further fall if the eggs are taken out from corrupt hens. Once these corrupt politicians got squeezed they will vomit out the dollars, NAB must check their basements and banks lockers. These corrupt politicians are real culprits for devaluation of rupee, they fiercely bought dollars at whatever rate they find from A to Z foreign exchange dealers. Hence rupee fall & dollar becomes dearer. The SBP must ask for selling details of last 6 months from F.Ex dealers, together with their security camera records. Things will get crystal clear after that.
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May 27, 2019 07:04pm
Wait until budget is announced.
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May 27, 2019 07:08pm
Dollar is not shedding any value against the rest of the world currencies. It is a trick played by the the so called Financial Experts by first depreciating
Rupee much much beyond the normal, and then bringing it down to show their generous favour to the already crushed nation, under the high explosion of market prices, that only rise with dollar but never come down with it.
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May 27, 2019 07:09pm
@Pakistan Khan, I doubt it very much. Although I think it will stabilize between 148 and 150 for the next 6-9 months period. After that all will depend on the govt policies.
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May 27, 2019 07:09pm
Save, save and save. Become more productive by exporting more and importing less, see the value of PKR improve, Pakistan is a young country with proud people, nothing is impossible. US is not the one blame it's our own fault.
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May 27, 2019 07:55pm
The dollar is losing some ground thanks to Trump's trade war with China.
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May 27, 2019 07:55pm
Simultaneous good news from the stock market & currency market is a positive sign. Negative propaganda dying down. Good job PTI.
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May 27, 2019 07:57pm
@ExMohajirinUK, ..... Unfortunately it is Pakistan's poor economic management of the country that may continue forever.
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May 27, 2019 08:22pm
The rich of Pakistan has to full stop expensive imports. Everyone in Pakistan should buy those cars that are made within Pakistan. Save money on tax and also help the economy. Pakistan should work on its exports channels. It's very hard for farmers to take their goods to exports and Pakistan lack the cargo ships. If it can even bring its current exports and fix the cargo ships it will save Pakistan a 4 billion usd a year or more. Imran Khan need to create funds for us Pakistanis to invest with a good interest (profit )
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May 27, 2019 08:26pm
Too little, too late. Unfortunately, irreparable and irretrievable damages to the value of Pak Ruppee have already been incurred in Forex market wherein, what goes down, it's very hard if not impossible to come up to its original position.
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May 27, 2019 08:34pm
At this climb rate, one will be able to buy US$ for 5.0 PKR in near future
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May 27, 2019 08:36pm
Buyers to have or not to have an interest in the dollar is not the point. The people who needed to swindle or still are will do it anyway! The economy is a mess. whatever the past the present is worse, only in the Musharraf era was it better for the people!.
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May 27, 2019 08:49pm
@Pakistan Khan, InshaAllah
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May 27, 2019 08:59pm
Lets hope rupee has stabilized it will give pakistani people some respite during ramzan.
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May 27, 2019 09:22pm
When firstly dollar hit 148 from 135 we saw dollar adjusted at 141
Now this time we see dollar ajdustment @ 149 to 150 rs.
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May 27, 2019 09:27pm
It is plausible that anyone planning to transfer funds from outside Pakistan will adopt a wait and see posture till the current volatility ends. The depreciation of the dollar might snowball if this wait ends and this will give a nasty blow to all those staching dollars under their mattresses.
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May 27, 2019 09:30pm
@Rehmatullah, "Seriously? Any clue how macro-economics works?", what is wrong in thinking positively in this holy month? Sadly, I have couple of Masters from one of the best universities in UK and one of them happens to be in Economics. I can confidently say that if the demand for Dollar comes down (as it is the case now), we as a nation can expect this (exchange rate) to be stabilized if not miracles. Anyway, if we don't feel confident on the strength of our economy, who else will?
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May 27, 2019 09:33pm
@Hamed A. Jarwar, "Unfortunately it is Pakistan's poor economic management of the country that may continue forever.", If we can't be proud and confident about our economy, who else will? Yes, I do agree that mistakes have happened in the past but then we need to identify those mistakes and move on by correcting. No one else will do it for us apart from us. Time to accept the reality and move on by supporting our Govt. (I am not a PTI supporter), but for the better good of our country, we need to be upbeat about our future and hope that our current rulers can manage it for the betterment of the masses.
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May 27, 2019 09:35pm
@Dr. Salaria, Aamir Ahmad, Its never too late Sir, This is only a blip, our time will surely come, we need to be patient and contribute whole-heartedly for the growth of our economy and country, If we can't and don't think positively about our country, who will?
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May 27, 2019 09:36pm
@Shriman yogi , Thanks for your good wishes, we are a resilient nation and we shall never giveup. Things can only get better from now on. Lets pray and contribute towards the success of our nation.
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May 27, 2019 10:31pm
@Bhaijan, i dont think overseas pakistanis will risk their investment. Already i lost more than aed15000 in rate change after listening to pm khan on sending money to pakistan. First stabilize economy and then ask for more money from overseas pakistanis
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May 27, 2019 11:02pm
@Waqar Khan, I dont mind local assembled cars if they install air bags, my safety is my first priority, I hope some day King Khan will make a policy about these safety features in locally assembled cars.
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May 27, 2019 11:15pm
This is only manipulation to calm down the situation, the realty will come later
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May 28, 2019 12:06am
Thankyou overseas Pakistanis
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May 28, 2019 12:38am
This is not a remarkable achievement that at first US$ was taken at its highest peak in open market @ of Rs 154 and then bringing it down but the question arises: at what rate US$ will be fluctiating in open market?
There is no need for Pakistanis to store US$'s in bundles as people buying any thing from any where one can only purchase by paying in Pakistani currency and not in US$.
Does people living in US buy Pakistani currency to store in bundles then why people purchase and store US$'s in Pakistan?
The government has to take drastic action in this regard in order to increase value of Pakistani currency and this will only be possible when government will fix a date and put a complete ban on trading all sort of foreign currencies including US$'s.
Only people going to US should be allowed to purchase US$'s in limited amount through banks only and that too after showing a valid US visas on their passports, otherwise, one should not be allowed to purchase US$'s from open market.
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May 28, 2019 12:41am
Learn from neighbours how to run your economy
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May 28, 2019 01:53am
It will settle at 150 for now till after budget is announced. Mostly sesonal effect in the picture at this time.
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May 28, 2019 04:31am
Let's Bring President Musharraf back to govern. During his 8 years dollar was only 60 rupees. He was the best ever president.
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May 28, 2019 04:44am
It's all due to black marketers that we see artificial inflation. Strong regulatory checks can drive away this menace for good. Cease all money changers and state bank should take away all foriegn exchange in control. Give it to genuine travellers only. It's not for investors or hoarders !!
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May 28, 2019 05:49am
In 5 years, dollar to rupee will be $1 to 100
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May 28, 2019 05:50am
@k k tiwari, in 5 years
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May 28, 2019 05:51am
@Rehmatullah, looks like you dont know either. Dump your misfed media narrative and educate yourself here.
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May 28, 2019 06:36am
Don’t get your hopes too high. Eid is the time there is a spike in remittances. The flood will soon recede.
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May 28, 2019 06:41am
Overseas Pakistanis to the rescue. Aren’t these same individuals being harassed by FBR and State Bank? State bank is making all accounts inactive without biometrics next month. FBR sends all sorts of messages on IRIS requesting you to file returns even if you are not living in Pak.
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May 28, 2019 06:46am
This is temporary. We cannot relax. We need to continue to tighten our belts and invest in technical education, health and industry.
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May 28, 2019 06:59am
@Syed A. Mateen , I am really surprised to be informed via your comment (last paragraph) that it is legal in Pakistan to our purchase foreign currency without any valid reason like import, travel abroad or remittance for education fees and medical expenses incurred abroad. If this is true then it explains the quagmire you are in. How could this policy be permitted for so long? Even a high school dropout can gauge the fallout of such a policy let alone those running the Finance Ministry and Central Bank. I hope what you said is not true, for the sake of your people.
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May 28, 2019 08:52am
Hike and drop both are artificial. What is the real value of Rupee?
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