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KARACHI: The rupee continued to appreciate on Tuesday as the value of the US dollar fell to below Rs100.
According to the forex.pk website, the open market rates for the greenback were Rs99.90 in buying and Rs100.45 in selling. However, the inter-bank rates dropped further to Rs99.50 in buying and Rs99.70 in selling.
The ongoing trend in the open market suggests that the value of the rupee has fallen by 0.99 per cent from Monday, and dropped by 5.64 per cent since January.
The current trend in the inter-bank trading showed a drop of 2.64 per cent from yesterday, and a 5.23 per cent fall from last month.
The yearly difference in both the open market and the inter-bank trends is a rise of 1.01 per cent and 1.73 per cent respectively.
Tuesday's depreciation caused exporters and foreign currency account holders to further sell their dollars to avoid losses.
Experts say that if the rupee stabilises to a certain extent, the prices of food items would decrease.
Finance Minister Ishaq Dar, in December 2013, had vowed to depreciate the greenback to below Rs100. He also urged investors to encash their dollars in order to avoid losses.
Inter-bank dealers predicted the previous day that the rupee would continue to appreciate further on Tuesday while the dollar would fall to around the Rs100-level.
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Comments (31) Closed
Mar 11, 2014 03:02pm
'The ongoing trend in the open market suggests that the value of the rupee has fallen by 0.99 per cent from Monday, and dropped by 5.64 per cent since January.'
This statement is incorrect. Perhaps the writer means the value of rupee has risen or strengthened. Perhaps DAWN should pay a bit more and hire quality proof-readers.
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Mar 11, 2014 03:04pm
Dear Editor,
Please make a correction in the text above. It is altering the meaning of the news item: "The ongoing trend in the open market suggests that the value of the rupee has fallen by 0.99 per cent from Monday, and dropped by 5.64 per cent since January."
The value of rupee has RISEN, not fallen.
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Mar 11, 2014 03:04pm
Mr Sheikh Rasheed had claimed on one Reputable news channel of Pakistan that if the Dollar will reach the 98 level against Rupee during the Nawaz's regime then he will leave the politics for good. I think Mr Sheikh Rasheed should honor his word and should start writing his resignation right now.
Also PTI's Asad Umer while bashing PMLN claimed that Dollar will reach 120 in the near future should also apologize as these politicians misled the people of Pakistan and did every effort to portray the Negative sentiment of the Pakistani economy.
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Mar 11, 2014 03:14pm
Such sudden upward and downward swings in the exchange rate are not good for the country in general. The sudden upsurge in the strength of the Rupee will hit remittances for this month along with the exporters who were bringing the proceeds back to the country.
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Mar 11, 2014 04:24pm
@Khurram Awan:
Mr. Khurram Awan You seem overjoyed not because rupee has strengthened its position against dollar but because its done so against the prediction of others. If I may ask as you seem to be ambassador of the current policy ??? is it cause we have made quantum leaps progress in our economy or we have just controlled price through temporary means i.e. reducing reserves of dollar !! will achieving this mile stone impact over poverty, inflation ??
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Mar 11, 2014 04:25pm
well done PML N ..its slap for all those people who said that doller will go up even more then 120 Rs.now just wait 2 years how well PML N coupe with economy and energy crisis.
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Mar 11, 2014 04:25pm
good news - we wish for more recovery in sha Allah
salman
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Mar 11, 2014 04:39pm
@Khurram Awan:
Sheikh Rasheed claim was about year 1999 my dear.
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Mar 11, 2014 05:01pm
sheikh rasheed should resign.
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Mar 11, 2014 05:14pm
Good news that the dollar rate is coming down but stability is more important as neither quick upward nor quick downward trend suits the economy... I hope the inflation rate and prices of commodities can come down to alleviate the common people... Stability is the key but the government has certainly pleasantly surprised everyone by the strengthening of the rupee... We must cherish this good news as there is a lot of negativity.
I dont belong to a particular party but i think asad umar was referring to the agreement with the IMF and how it had suggested more devaluation of rupee...
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Mar 11, 2014 08:19pm
Good!
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Mar 11, 2014 08:36pm
@Khurram Awan:
Forget about everything else. I can't believe people still vote for PML.n after all the corruption and scandals against this corrupt party.
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Mar 11, 2014 08:59pm
I am smelling an adhoc based reform here. The rise we are seeing is not because the economy is doing better. Its because some "friend countries", you know what i mean Sharif's friend countries, are pumping dollars in a newly established Pakistani fund. We don't know if that money is coming as loan or fund. There was a report saying so far 1.5 billion dollars have been raised. This is good if economy has tendency to recover but unfortunately in Pakistan's case its not. The expenses are way way higher than the revenue. This trend will suck up every foreign remittance even if its 100 Billion dollars.
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Mar 11, 2014 09:19pm
I am not an expert on currency or financial matters, but I think moderation is the best policy, sudden rise or fall has its own after effects,the drastic change in rate of exchange was not expected, I hope these fluctuations does not occur in future and the rate of exchange is maintained at normal pace in the long run.
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Mar 11, 2014 10:47pm
Great news !!
Finally politicians are working, and I think our vote counts !!
Proud Pakistani.
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Mar 11, 2014 11:25pm
I wished the author had also elaborated the factors behind the recent trend of Rupee rising against the dollar. Is this a short term trend due to a short term policy or interference?
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Mar 12, 2014 01:37am
@sara:
There is no real recovery in our economy. USD has itself fallen against all the major currencies. Go check Indian ruppe, Euro or any other currency's parity with USD. In Pakistan, unemployment or inflation have not fallen and Investments are a fruit of another world, so how could it make the rupee strong.
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Mar 12, 2014 01:51am
Mr.Dar needs to explain on the record what steps he took to make this happen. If this appreciation in Rupee is a result of the statements he made in December ( explained towards the end of the article) then I dread the way Rupee will crumble in future against the dollar.
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Mar 12, 2014 06:02am
I don't belong to any political party, but just a couple of questions from the people appreciating the trend - what have we really done economically over the past few months to deserve this? Is the energy crisis over and production/export industry back to full throttle? Has sustainable peace been ensured with investors flying in with capital? If not, don't you think its just another speculative bubble that will eventually burst after benefitting the few?
I believe so. Let's wait and see.
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Mar 12, 2014 06:51am
A $1 has substantially more purchasing power in U.S.A. than Rs. 100.00 in Pakistan.
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Mar 12, 2014 06:58am
" IN GOD WE TRUST"
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Mar 12, 2014 08:30am
There is no real growth in exports or substantial drop in imports, Industry is facing the worst energy crisis in past 25 years, we have depleting forex reserves, inflation is at the same level or high, price hike as it is or on higher side, law and order another big question mark for Pakistan. Islamabad, major cities of KPK, Baluchistan and financial hub of Pakistan Karachi seems under siege.
Keeping all above in mind, the gain may be short lived.
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Mar 12, 2014 09:36am
@Khurram Awan:
Please respond to 'Owais' comment
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Mar 12, 2014 11:52am
I 100% agree with Mr.Saad's comments below as it is going to be a bubble since nothing which goes up/down so quickly is natural and is not going to survive.
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Mar 12, 2014 12:44pm
Excellent even if it is short lived...
Increase value of rupee.. even if export hurts... focus on product quality and not value... China or other countries will beat us at that... Focus on domestic markets..
Increase agricultural and downstream related industries
Future belongs to agricultural countries... energy (oil) would be replaced with wheat, grains, rice and foods items...as sought after commodities..
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Mar 12, 2014 01:10pm
Is this because of some real production in the country or any investment or any growth?? Its not. so stop cheering the government.
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Mar 12, 2014 04:45pm
A temporary respite is not the solution... how long it is going to be sustained that is the question.. One often learns more from 65 years of agony than from a couple of days of contentment.
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Mar 12, 2014 05:39pm
@sara:
Two years, so the leadership lied when they said we will end loadshedding in a year and their many other promises were also lies? What about "we have done our home work and we will start working straight away" only last week Sharif held his arms up and said "i dont know what to do"...but all we just have another version of GHADARI..If you ever get the chance Sara ask Nawaz Sharif to spell the word DEMOCRACY, because he sure dont know what it means!!
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Mar 12, 2014 06:03pm
USD has fallen against all other currencies.What a big deal?? We got some grants from some nation..Should we be proud of this??..Look at inflation level.Look at FDI figures..Its all down...
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Mar 13, 2014 01:24pm
@Naeem Afzal:
How is that possible? If i could remember, dollar was around Rs60 at that time.
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Mar 13, 2014 08:47pm
So all the people praising PML(N) for the great job the are doing now know it's nothing but a 1.5 billion dollar LOAN that improved rupee again the dollar? No miracles have happened yet. It's all temporary.
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