AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

Experts have warned that the Pakistani rupee is expected to depreciate in the coming days, unless confidence returns among investors and the International Monetary Fund (IMF) revives its bailout programme.

The rupee fell sharply last week from 262.6 to 276.58 against the US dollar in the inter-bank market, an all-time low.

“It seemed to have stabilised around the 270 level until the Prime Minister and Finance Minister spoke,” noted Tresmark in a report released on Saturday.

“When the PM said that the IMF is imposing harsh conditions and when the FM said they are looking for philanthropists for billions of dollars, traders assumed that the leadership was still looking for avenues other than IMF or that they will waste more time in negotiating with them,” it said.

“But in our assessment, the PM may have been only trying to prepare other stakeholders and vote base for harsh steps and measures,” the report said.

It added that “another more important factor in the rupee’s downfall was the steep decline in reserves which are now at $8.7 billion (down by $712 million).”

Data released on Thursday showed the State Bank of Pakistan’s (SBP) foreign exchange reserves dropped $592 million to a mere $3.09 billion, the lowest level of central bank reserves since February 2014.

Tresmark also said that the rupee will remain under pressure unless confidence returns among investors.

“Until and unless traders don’t feel confident of things to get better, especially the reserves situation, the rupee will continue to fall, irrespective of its level.

“Traders we spoke to think the 1st and 2nd level of resistance of 280/$ & 285/$ will be ceded in the coming week, unless the IMF comes on board.

“They also feel that 270-275/$ is the fair level post-IMF agreement, and any outruns will be temporary and will get corrected once there is some visibility of inflows,” it added.

Comments

Comments are closed.

RSM Feb 04, 2023 04:59pm
I say after the eilte's & others hoarding of some 10 Billion $ locally, let it fall, let the rupee fall so much that it becomes meaningless to shift assets abroad. That way the Govt. will not come under pressure for maintaining $ while it continuously pours out abroad for asset shifting or to Afghanistan bcz of namaloom
thumb_up Recommended (0)
Kashif ALI Feb 04, 2023 06:54pm
Political interest vs National (Pakistan's interest). This balancing must never come into equation in the decision making process of national policies. This means that there should be such sort of government which must not have any political interest in the country. Their priority and interest must be Pakistan and only Pakistan. And whatever needs to be done to make Pakistan stable and strong, it must be decided and implemented in the truest sense and at the earliest. PAKISTAN FIRST!!!!
thumb_up Recommended (0)
ayyaz Feb 04, 2023 10:37pm
@Kashif ALI, Its mean some dictator, yes.there is no other option
thumb_up Recommended (0)
ayyaz Feb 04, 2023 10:38pm
Its mean some Dictator,yes.
thumb_up Recommended (0)
RNZ Feb 04, 2023 11:27pm
@RSM, What are you talking!!
thumb_up Recommended (0)
TimeToMovveOn Feb 05, 2023 05:56pm
@Kashif ALI, "PAKISTAN FIRST!!!!" But ...but ...what about Kashmir. I thought Kashmir was first!
thumb_up Recommended (0)