Dollar sheds value by Rs4.20 in interbank market
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The value of the dollar on Friday considerably decreased in the open market as well as the interbank market by Rs2.50 and Rs4.20 respectively.
The greenback shed its value against the local currency to fall to Rs161 in the open market, while in the interbank market it hit Rs160.
Earlier on Wednesday, the local currency had shed its value by a whopping Rs7.2 in a single day to hit Rs164 in interbank trade ─ a record low ─ at the close of the day's trading. Similarly, the greenback had been traded at Rs163 in the open market ─ showing an increase of at least Rs6 on the day.
The trend continued on Thursday and the dollar's value slightly increased in both the open market and the interbank market by Re0.50 and Re0.20 respectively.
Meanwhile, Governor of State Bank of Pakistan (SBP) Reza Baqir called on Prime Minister Imran Khan on Wednesday when the value of the US dollar against the rupee touched an all-time high.
According to some dealers, the meeting yielded results today, as they believed the arrest in the value of the greenback is a result of intervention by the top bank.
In his first press conference, the new SBP governor had assured that the central bank would interfere in the exchange rate if the market became volatile, the exchange rate will be market-based and that the free float does not suit the country’s economy.
However, despite the assurance, currency dealers complain that either the SBP avoids intervening or some officials in the bank are hand in glove with those commercial bankers who allegedly create an artificial demand of the greenback.
The exchange rate remained almost unchanged, hovering around Rs157 for more than a week while the market was feeling that the dollar could see depreciation against the rupee in the near future.
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On DawnNews
Comments (61) Closed
Jun 28, 2019 01:47pm
It is around fighting T20 score.
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Jun 28, 2019 01:55pm
A big gambling may be govt also involved to make money.
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Jun 28, 2019 01:57pm
This government needs to be investigated for corruption.
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Jun 28, 2019 01:57pm
This government is a nightmare for businessmen. We cannot plan anything as everyday the price is fluctuating and we have to readjust our OKRs and KPIs on a daily basis to reflect the market conditions.
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Jun 28, 2019 01:59pm
SBP needs to regulate the US$ trading and keep a close tab on it ... money changers are having great time.
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Jun 28, 2019 02:01pm
The mafia is all out to fail the government. But their ill-aimed efforts will not weaken Pakistan.
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Jun 28, 2019 02:05pm
Today’s price is very important because it will be considered the closing price for the fiscal year. So lots of manipulation.
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Jun 28, 2019 02:07pm
It's a humble request to media to unveil Black mafia behind dollar artificial fluctuation. They are everywhere near money exchangers, selling and buying dollars like movie tickets
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Jun 28, 2019 02:12pm
The basic reason for the downfall is over appeasing of China. To appease China Pakistan surrendered its market to Chinese import. It halted local industries and stopped export. No export means no dollar. Then we start borrowing and under heavy debt. Unless we realize that we should work for us, not for China, this cycle will continue again and again.
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Jun 28, 2019 02:12pm
The IMF borrowed team must resign if they cannot control the monopoly of rates by vested interest.
Take measures to stablalise the currency or go home. The people have not voted for PTI to face such prolonged uncertainty.
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Jun 28, 2019 02:18pm
IK is in action... soon dollar may collapse drastically..
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Jun 28, 2019 02:21pm
@Kamran
Never fight market forces, Otherwise govt. and country looses.
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Jun 28, 2019 02:23pm
Rupee falls two steps and gains one step
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Jun 28, 2019 02:23pm
Volatility/uncertainty is no good. Can we have stability? How?
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Jun 28, 2019 02:25pm
Brace yourself for 175 by end of july
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Jun 28, 2019 02:28pm
Thanks for 3 billion. They are in action now.
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Jun 28, 2019 02:30pm
Thats due to profit booking.
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Jun 28, 2019 02:31pm
Somebody is making huge money otherwise how can rates change so drastically within one day.
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Jun 28, 2019 02:31pm
PKR will touch 180 against usd very soon. Please see najam sethi news on youtube.
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Jun 28, 2019 02:41pm
Just took a break before it will reach Pkr 200, Pakistanis will respond only when backed in the corner. This is the nature of my people.
We support you Honorable Prime Minister Imran Khan due to you one fact Honest!
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Jun 28, 2019 03:04pm
@Malik Saab, .... Look on the bright side. The job market for accounting clerks has increased.
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Jun 28, 2019 03:05pm
@Babar, .... They never had it so good.
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Jun 28, 2019 03:13pm
Powerful speculators having a field day
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Jun 28, 2019 03:19pm
Great time for money changers. They can make huge profit.
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Jun 28, 2019 03:22pm
US Dollar remains stable against Bangladesh Taka for many months. 1 US$ = 84 Bangladesh Taka.
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Jun 28, 2019 03:22pm
Someone is making lots of money due to govt indecision! Nab needs to investigate only if it dares!
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Jun 28, 2019 03:22pm
@Malatesh: Yes IK has taken strong steps to control the Dollar. In 3 months it should settle sown to sub-120 levels.
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Jun 28, 2019 03:33pm
Get set go and purchase dollars now. After few days it may go up to 200PKR. Some big people are making money for sure.
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Jun 28, 2019 03:58pm
To every rise there is a fall and for every Trump, there is a wall.
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Jun 28, 2019 04:03pm
Why is this open speculation being allowed ? ....... it is making a handful of people very rich and damaging the economy and the credibility of those who manage it.
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Jun 28, 2019 04:05pm
this needs to be controlled no matter what.
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Jun 28, 2019 04:27pm
Rs. 200 by December. Brace for it.
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Jun 28, 2019 04:35pm
Poor dollar. Us is in trouble
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Jun 28, 2019 04:44pm
This zigzag in dollar price shows manipulation by government for own benefit. It's totally cheating with common peoples.
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Jun 28, 2019 04:48pm
@Ash Man , it's not the mafia only. Masses are hand in glove with them. If people are honest and pay their dues, the country will grow and come out of this crisis.
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Jun 28, 2019 04:55pm
@Swiss Neutral, it gained 8 and fall 4
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Jun 28, 2019 05:09pm
Even if it has come down but what is the surety that it will remain as such and no further increase would occur. Never. We are surely bound to see high rise in near future depending on the situation.
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Jun 28, 2019 05:22pm
With 1st July nearing the Dollar may even hit below 155/=
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Jun 28, 2019 05:35pm
new type of corruption,
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Jun 28, 2019 05:47pm
Who can do business in such a volatile currency market.
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Jun 28, 2019 06:11pm
Scaring away individuals snd small-time currency traders from stockpiling dollar. It's a normal practice by large fund house in stock trading. Governmental involvement in such practice is questionable from ethical point of view.
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Jun 28, 2019 06:15pm
@Malatesh, US and particularly chinese with $3 trillion will be pauper because the great IK will intervene to stage a collapse of $.
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Jun 28, 2019 06:20pm
@Dr. Salaria, Aamir Ahmad, how about if we reverse your wisdom? For every fall there is a rise?. Speculation trading behaves like that. Creating high volatility scare away the small trader a the big fish took all the profits. This volatility is a sign of long jump. Just hope that it is the final one.
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Jun 28, 2019 07:16pm
@Malik Saab,
Problem is nobody in this government knows what is happening.
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Jun 28, 2019 07:29pm
Pakistani Government are too lenient on the corrupt Mafia, of they don't take action now, Pakistani Rupee will be in very bad shape, there is no one who loves the country, just round them up, nothing else, The Dollar
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Jun 28, 2019 07:37pm
One day Dollar go up and second day came down is there any game or their money manger are clueless but i feel those who manage money has no idea and vision i want to tell you future problem as Pakistan get oil deferred payment but you all are happy but hidden truth no body know let say today govt of pakistan buy crude at present rate i.e.159 usd but after one year if dollar reach at 180 than pak govt pay 180 instead of 159 i.e.21 dollar higher so more than 15 %interest
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Jun 28, 2019 08:59pm
It is the state bank which is setting the interbank market rate, and hence the steep drop in value came from them. Another indication is the open market where the rate was below the interbank market signalling that the State Bank was manipulating the Rs down. This downward manipulation has to stop as the country is in no position to sustain the inflationary impacts of this free fall after a 30% drop in 1 year already.
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Jun 28, 2019 09:12pm
as they believed the arrest in the value of the greenback is a result of intervention by the top bank.
Great, since the top bank takes the credit for decrease value of the dollar, they can also take the responsibility of the Rupee losing its value
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Jun 28, 2019 09:25pm
It’s nothing but gambling. Make Pakistan rupee fully convertible at market rate. This way all speculation will be gone and real value of it towards all foreign currency stops.
SBP shall limit foreign exchange going out of country monitored for real purchases of goods necessary for genuine needs of people and put a cap on luxury items including cheap goods coming from China. At present business & others are suffering. True value of US $ is 180-200 today if free floating allowed.
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Jun 28, 2019 11:30pm
In other words rupee is gaining against mighty dollar ! great...
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Jun 28, 2019 11:32pm
The government is busy in lecturing opposition not to use Selected word and selectors plus the real beneficiaries are making money big time
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Jun 28, 2019 11:52pm
As COAS rightly mentioned about fiscal mismanagement.... that led to devaluation of the rupee.
Extremely happy to note that he said about easy ways to improve currency exchange rate (read the previous report in Dawn) quickly.
Hail the uniform:-)
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Jun 29, 2019 12:59am
There is no attempt to control imports and capital out flow, the real reason for the Rupee loosing value. People who are supposed to do it are themselves involved in Rupee devaluation as it helps them.
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Jun 29, 2019 02:56am
@Zak, the way it is going it will settle atRS200.
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Jun 29, 2019 02:56am
Hope $ sheds value to Rs.100, we might get out of economic quagmire. Sound unrealistic if believed in government 's fiscal policy. Let us hope.
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Jun 29, 2019 03:56am
This is the worst government; they know how to foll the ignorant masses.
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Jun 29, 2019 04:00am
@Malik Saab, I wonder people know the meaning of OKRs and KPIs.
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Jun 29, 2019 04:02am
@Reader, Currency fall is good for exports, bad for countries with nothing to export.
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Jun 29, 2019 06:20am
Imran Khan in 2016: "Dollar's value is increasing due to the corrupt leaders."
its still increasing and all we got is amnesty schemes.
PTi is utter failure and Imran khan is clue less, all he got in his defense is "I am not corrupt" yeah well its not good enough.
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Jun 29, 2019 08:29am
Once SBP promised to maintain a band, speculators have gone after the PKR. Given that interest rates are going up, PKR should be strengthening, not weakening.
Will appreciate an investigative article by Dawn on how the FX market operates in Pakistan.
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Jun 29, 2019 08:08pm
It is time for at least all PTI Ministers to declare their US$/Foreign currency assets including Prime Minister US$ in his bank accounts.
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