Latest news with #Re0.21
Business Recorder
25-07-2025
- Business
- Business Recorder
Pakistan to slow dollar buying, reduce rupee pressure: report
The State Bank of Pakistan (SBP) will continue to build its dollar stockpile but at a slower pace without putting undue pressure on the rupee, according to Citigroup Inc., Bloomberg reported. 'Although reserves have improved from the lows of early 2023, we still continue to welcome the central bank's reserve building as external buffers remain low,' Katie Kironde, emerging markets economist and macro strategist at Citi, wrote in a note. The central bank eased its reserve building strategy this week, and this helped liquidity improve in the interbank market, she added. The pressure on the Pakistani rupee has eased in the past three trading sessions, data from the central bank shows. The currency, however, is still lagging most peers in Asia year-to-date, having fallen over 2% against the dollar. The country's forex reserves, meanwhile, rose $23 million to $14.53 billion as of July 11. In the interbank market on Friday, the rupee appreciated 0.27% against the US dollar, settling at 283.45, a gain of Re0.77 compared to the previous close of 284.22. This marks a continuation of the currency's strengthening trend observed earlier in the week. Currency dealers attribute the improvement in the rupee's performance partly to a reported crackdown on foreign currency smuggling by law enforcement agencies. According to Malik Bostan, Chairman of the Exchange Companies Association of Pakistan (ECAP), raids conducted by the Federal Investigation Agency (FIA) against smugglers led to a drop in the dollar rate both in open and interbank markets. On Wednesday, the rupee had recovered by Re0.21 in the interbank, closing at Rs284.76 compared to Tuesday's Rs284.97. Bostan revealed that he had led a delegation to meet Director General Counter-Intelligence General Faisal Naseer at the Inter-Services Intelligence (ISI) headquarters. Following the meeting, orders were reportedly issued for a targeted crackdown against currency smugglers, particularly those operating routes to Afghanistan and Iran. 'The dollar supply to legal channels had been shrinking due to better rates in the black market. With this crackdown, the smuggler mafia has gone underground,' Bostan said, expressing optimism that the exchange rate could fall further to Rs270 or even Rs250 if enforcement continues. Meanwhile, global currency markets also lent support to the rupee's recent performance. The US dollar steadied near two-week lows on Friday, with the dollar index set for its weakest weekly performance in a month. Oil prices also rose on optimism around trade developments and potential Russian gasoline export restrictions, further supporting sentiment. Financial conditions in Pakistan have improved, with the central bank cutting the key policy rate by half to 11% since last year to bolster growth. The South Asian nation has steered itself out of near-default conditions in 2023, with the Shehbaz Sharif-led government unlocking funds under International Monetary Fund programs and unveiling a budget that pledged to stay the course on fiscal consolidation.
Business Recorder
11-06-2025
- Business
- Business Recorder
Intra-day update: rupee declines against US dollar
The Pakistani rupee registered marginal decline against the US dollar, depreciating 0.07% during the opening hours of trading on Wednesday. At 10:25am, the local currency settled at 282.33, a loss of Re0.21 against the greenback. On Monday, the rupee settled at Rs282.12 against the US dollar. Internationally, the US dollar and China's yuan were steady on Wednesday as teams from US and China concluded trade talks in London, hinting at a thaw in a damaging trade war between the world's two largest economies but offering scant detail. The countries' officials agreed on a framework based on a trade truce reached last month in Geneva that would resolve China's export restrictions on rare earth minerals and magnets, and remove some US export restrictions that were recently put in place. The US dollar firmed slightly in the wake of the news, pushing the euro down 0.07% to $1.141 and steadying at 144.91 yen. China's onshore yuan was little changed at 7.1873 per dollar, while the offshore unit stood at 7.1875. An index that measures the greenback against six other currencies inched up 0.1% and last stood at 99.132. However, analysts noted that any newly agreed tariffs would still be higher than they were late last year and would thus be a drag on the global economy. Also keeping investors cautious, a federal appeals court allowed President Donald Trump's most sweeping tariffs to remain in effect, while it reviews a lower-court decision blocking them on grounds that he had exceeded his authority by imposing them. Much of the year has been dominated by investors' unease over Trump's erratic policies. Despite a bounce back in US stocks, the erosion of investor confidence is clearly reflected in the dollar, which is down more than 8% so far this year. Oil prices, a key indicator of currency parity, softened in Asian trade on Wednesday as markets assessed the outcome of US-China trade talks, yet to be reviewed by President Donald Trump, with weak oil demand from China and OPEC+ production increases weighing on the market. Brent crude futures declined 19 cents, or 0.3%, to trade at $66.680 a barrel, while US West Texas Intermediate crude fell 16 cents, or 0.3%, to $64.82 at 0318 GMT. This is an intra-day update
