logo
Re0.41 decline

Re0.41 decline

KARACHI: Rupee depreciated further against the US dollar in the inter-bank market as it lost Re0.41 or 0.15% during the previous week.
The local unit closed at 284.87, against 284.46 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).
In a key development, Pakistan's current account (C/A) posted a massive surplus of $2.1 billion during the fiscal year (FY) 2024-25, a sharp contrast against $2.07 billion deficit recorded in the FY24, SBP data showed.
Pakistan currency hit 21-month low at the international matrix of real effective exchange rate (REER) index, depreciating 1.22% to 96.61 points in June 2025, compared to the prior month of May.
Meanwhile, foreign exchange reserves held by the SBP increased by $23 million on a weekly basis, clocking in at $14.53 billion as of July 11, data released during the previous week showed. The country's total liquid foreign reserves stood at $19.96 billion. Net foreign reserves held by commercial banks stood at $5.43 billion.
Open-market rates
In the open market, the PKR lost 1.02 rupee for buying and 1.10 rupee for selling against USD, closing at 287.37 and 288.60, respectively.
Against Euro, the PKR gained 76 paise for buying and 38 paise for selling, closing at 334.92 and 338.27, respectively.
Against UAE Dirham, the PKR lost 31 paise for both buying and selling, closing at 78.52 and 79.22, respectively. Against Saudi Riyal, the PKR lost 38 paise for buying and 37 paise for selling, closing at 76.81 and 77.35, respectively.
=========================================
Weekly inter-bank market rates for dollar
=========================================
Bid Close Rs. 284.87
Offer Close Rs. 285.06
Bid Open Rs. 284.46
Offer Open Rs. 284.65
=========================================
Weekly open-market rates for dollar
=========================================
Bid Close Rs. 287.37
Offer Close Rs. 288.00
Bid Open Rs. 286.35
Offer Open Rs. 287.50
=========================================
Copyright Business Recorder, 2025
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

UBG Chief urges SBP to cut interest rate to 6pc
UBG Chief urges SBP to cut interest rate to 6pc

Express Tribune

time10 hours ago

  • Express Tribune

UBG Chief urges SBP to cut interest rate to 6pc

Listen to article S M Tanveer, Patron-in-Chief of the United Business Group (UBG), has called on the State Bank of Pakistan (SBP) to reduce the policy interest rate to 6 per cent, citing low inflation and the need to spur economic growth. In a statement issued on Thursday, Tanveer said the prevailing interest rate of 11pc is disproportionately high, especially given that the Consumer Price Index (CPI) stands at 0.3pc while average inflation is currently hovering around 4pc. He noted that the International Monetary Fund (IMF) recommends maintaining interest rates slightly above the inflation rate to keep them positive in real terms. "At 11pc, Pakistan's interest rate is far above the inflation rate, stifling industrial growth and increasing the cost of doing business," he said. Read More: Profit-taking pulls PSX down after strong opening With the monetary policy announcement due on July 30, Tanveer urged the central bank to consider a significant rate cut. He argued that such a move would reduce the government's interest payments, stimulate investment, and make Pakistani exports more competitive. He pointed out that the government has allocated Rs8.5 trillion for interest payments in the current budget. A cut in the interest rate to 6pc, he claimed, could save nearly Rs3.5 trillion. Highlighting the challenges faced by the business community, Tanveer also criticised certain fiscal measures in the recent budget. In particular, he expressed concern over Sections 37A and 37B of the Income Tax Ordinance, which grant tax authorities the power to arrest and detain. He urged the government to focus on creating a business-friendly environment, noting that high borrowing costs, coupled with soaring energy prices, are already weighing heavily on industry. Also Read: PM Shehbaz hails World Bank position on IWT Meanwhile, the SBP has maintained its policy rate at 11pc in recent months, citing inflationary pressures and vulnerabilities in the external sector. However, with inflation expected to stabilise around the long-term average of 7pc in the coming quarters, analysts believe there may be room for a cautious easing of monetary policy. The external account outlook has improved, buoyed by strong inflows of workers' remittances, and foreign exchange reserves are projected to rise beyond $13 billion by June 2025 — developments that may provide the SBP with greater policy flexibility.

Saudi Arabia signs major investment deals to help rebuild Syria
Saudi Arabia signs major investment deals to help rebuild Syria

Business Recorder

time11 hours ago

  • Business Recorder

Saudi Arabia signs major investment deals to help rebuild Syria

DAMASCUS: Saudi Arabia on Thursday signed major investment and partnership deals with Syria, valued at $6.4 billion, to help rebuild the war-ravaged country's infrastructure, telecommunications and other major sectors. Saudi Arabia has been a major backer of the new Syrian government, which seized power after an Islamist-led offensive toppled longtime Syrian ruler Bashar al-Assad in December. Speaking at the Syrian-Saudi Investment Forum in the Damascus presidential palace, Saudi Investment Minister Khalid Al-Falih announced 'the signing of 47 agreements and memoranda of understanding… with a total value of nearly 24 billion Saudi riyals (around $6.4 billion)'. With interim President Ahmed al-Sharaa and other officials in attendance, Syrian economy minister Mohammed al-Shaar called the forum 'a historic milestone in the history of relations between our two brotherly countries'. Syria to sign 44 agreements worth nearly $6 billion with Saudi Arabia Falih said that 11 billion riyals (around $2.9 billion) would be spent on the infrastructure sector and would see the construction of three new cement factories. Saudi telecommunications companies will invest four billion riyals (around $1.07 billion) 'with the aim of developing infrastructure and enhancing cyber-security capabilities', he added. Other sectors including agriculture and finance are also expected to benefit from major agreements. Syria's 14-year civil war devastated much of the country's infrastructure and its new leaders are hoping to receive international support for reconstruction efforts, which the UN estimates could cost more than $400 billion. Earlier this month, President Donald Trump formalised the dismantling of US sanctions on Syria, hoping to reintegrate the country into the global economy. He had already lifted most of the measures in May, responding to appeals from Saudi Arabia and Turkiye. In May, Syria signed a $7 billion energy deal with a consortium of Qatari, Turkish and US companies to help revive its electricity sector.

Rupee gains against US dollar amid reported crackdown
Rupee gains against US dollar amid reported crackdown

Business Recorder

time14 hours ago

  • Business Recorder

Rupee gains against US dollar amid reported crackdown

Rupee's Performance Against US Dollar Since 04 March 2025 The Pakistani rupee strengthened against the US dollar, appreciating 0.19% in the inter-bank market on Thursday. At close, the currency settled at 284.22, a gain of Re0.54. On Wednesday, the currency settled at 284.76. Pakistan's law enforcement agencies have reportedly launched a crackdown against foreign currency smugglers, aiming to prevent the illegal outflow of currencies such as US dollars to neighbouring countries, including Afghanistan and Iran. The raids led to some appreciation of the rupee against US dollar on Wednesday, said Exchange Companies Association of Pakistan (ECAP) chairman Malik Muhammad Bostan on Wednesday. Internationally, the euro crept toward its highest level in nearly four years on Thursday while the yen held to gains following more progress on trade deals between the United States and its largest trading partners, which in turn lifted the broader market mood. Currencies mostly shrugged off news that US President Donald Trump, a vocal critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday. It was not immediately clear whether Trump, who has lambasted Powell repeatedly for not cutting US interest rates more aggressively, would be meeting with the Fed chief. Markets were paying close attention to various tariff negotiations. The European Union and the US are moving towards a trade agreement that could include a 15% US baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday. That came on the heels of Washington's trade deal with Tokyo that lowers tariffs on auto imports and spares the latter from punishing new levies on other goods in exchange for a $550 billion package of US-bound investment and loans. Global markets took to the latest developments positively, as risk assets rallied and investors sold the US dollar. The dollar index eased slightly to 97.15. Oil prices, a key indicator of currency parity, rose on Thursday, buoyed by optimism over US trade negotiations that would ease pressure on the global economy and a sharper-than-expected decline in US crude inventories. Brent crude futures gained 24 cents, or 0.4%, to $68.75 a barrel by 0032 GMT. US West Texas Intermediate crude futures climbed 25 cents, or 0.4%, to $65.50 per barrel. Both benchmarks were little changed on Wednesday as markets monitored developments in US-European Union trade talks, following President Donald Trump's tariff deal with Japan.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store