Dollar continues climb against rupee, edges up to Rs158.6 in interbank

Published March 11, 2020
After staying steady for around six months, the greenback began rising on Monday. — AFP/File
After staying steady for around six months, the greenback began rising on Monday. — AFP/File

The United States dollar continued its gains against the rupee on Wednesday in the intraday trade as it rose by a further Rs0.8 to reach Rs158.6 by 4:26pm in the interbank market.

In percentage terms, this showed an increase of 0.51 per cent over Rs157.8 at the day’s beginning.

After staying steady for around six months, the greenback began rising on Monday and posted a sharp jump of Rs3.65 (or 2.36pc) to reach Rs157.9 by the day’s end.

The open market also noticed an upward movement as the dollar rose by Re1 to Rs158 during intraday trade today.

Much of this change can be attributed to foreigners unloading their positions in the equity and debt markets.

“International investors have been selling their stakes in the stock exchange, which has created demand for dollars. The T-bills, which attracted hot money inflows, are also set to mature in less than a week,” said former general secretary of Exchange Companies of Pakistan, Zafar Paracha.

“The rupee shouldn’t have lost value as the dollar itself has declined against the euro but the coronavirus outbreak has induced part panic, part speculation among investors,” he added.

Forex Association of Pakistan President Malik Bostan put weight behind this explanation and said: “With the maturity of government papers just around the corner, many foreigners are liquidating their positions instead of reinvesting, which has created demand for dollars in the interbank market.”

Recent remittance published by the State Bank of Pakistan on Tuesday showed an increase of 5pc during the first eight months of this fiscal year. Combined with that, the SBP reserves have continued to rise while exports also posted growth as per the last figures, suggesting that fundamentals regarding the external account have witnessed no change.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Business concerns
Updated 26 Apr, 2024

Business concerns

There is no doubt that these issues are impeding a positive business clime, which is required to boost private investment and economic growth.
Musical chairs
26 Apr, 2024

Musical chairs

THE petitioners are quite helpless. Yet again, they are being expected to wait while the bench supposed to hear...
Global arms race
26 Apr, 2024

Global arms race

THE figure is staggering. According to the annual report of Sweden-based think tank Stockholm International Peace...
Digital growth
Updated 25 Apr, 2024

Digital growth

Democratising digital development will catalyse a rapid, if not immediate, improvement in human development indicators for the underserved segments of the Pakistani citizenry.
Nikah rights
25 Apr, 2024

Nikah rights

THE Supreme Court recently delivered a judgement championing the rights of women within a marriage. The ruling...
Campus crackdowns
25 Apr, 2024

Campus crackdowns

WHILE most Western governments have either been gladly facilitating Israel’s genocidal war in Gaza, or meekly...