The rupee, under the corrective measures by the State Bank of Pakistan (SBP), managed to hold present levels against the dollar during the week, ended on July 07, 2018.
INTER-BANK MARKET: The rupee held it's weeks long levels in terms of the dollar for buying and selling at Rs 121.55 and Rs 121.56.
OPEN MARKET RATES: The rupee did not move any side in terms of the dollar for buying and selling at Rs 124.00 and Rs 124.50. While the rupee lost Rs 1.50 versus the euro for buying and selling at Rs 144.50 and Rs 146.50. According to reports, to ward off speculative buying of dollars, the State Bank of Pakistan (SBP) has tightened currency movement of the US dollar and the rupee within country.
The central bank took fresh measures just after grey listing of Pakistan by the Financial Action Task Force (FATF). The Bank issued instructions to exchange companies (ECs) to bring the currency movements under the strict moonitoring of the central bank President Forex Association of Pakistan (FAP) Malik Bostan, said that several meetings of ECs held to make strategy to arrest dollar's surge versus the rupee. He also said that a meeting of ECs with the central bank is expected on Monday to review further strict and practical measures for easy supply of dollars. Bostan said that corrective steps are necessary to discourage Hundi or Havala systems. We need to adopt measures to get rid of dollar culture, and to give a boost to revive rupee-dollar official parity, President FAP said.
The government has failed in achieving desired target in not only foreign exchange regime, whereas it has also lost several goals in different sectors.
Recently, Ali Jehangir Siddiqui, Pakistan's ambassador to the United States said that there would be no major impact on country's economy after being placed on the Paris-based FATF watch list. In an interview with a foreign media agency, he said that Islamabad hopes to get off the list within fifteen months and that government is committed to further tighten rules against money laundering.
About Pakistan economy condition, he said the multi-billion dollars CPEC project has given a tremendous boost to its economy and investment and it has recovered significantly in the past few years, posting a 5.5 growth in the previous financial year.
Now, a lot of responsibilities and liabilities are on the shoulders of new government, how it will tackle the challenges to bring the economy on track, it is difficult to predict?
INTER-BANK MARKET RATES: On 2nd July 2nd, the rupee-dollar official rates were not issued due to bank closure. On 3nd July, the national currency tended lower versus the dollar, shedding five paisas for buying and selling at Rs 121.54 and Rs 121.55, they added.
On 4th July, the national currency managed to hold overnight levels in relation to the dollar for buying and selling at Rs 121.54 and Rs 121.55, they added. On 5th July, the rupee showed no change in terms of the dollar for buying and selling at the same level. On 6th July, the national currency shed one paisa in relation to the dollar for buying and selling at Rs 121.55 and Rs 121.56.
OPEN MARKET RATES: On Monday, the rupee was unmoved in terms of the dollar for buying and selling at Rs 124.00 and Rs 124.50. While, the rupee lost 50 paisas against the euro for buying and selling at Rs 143.00 and Rs 145.00.
On Tuesday, the rupee did not show any change in relation the dollar for buying and selling at Rs 124.00 and Rs 124.50, they said. While, the rupee lost 80 paisas against the euro for buying and selling at Rs 143.80 and Rs 145.80, they said. On Wednesday, the rupee stayed put in relation the dollar for buying and selling at Rs 124.00 and Rs 124.50, they said. While, the rupee dropped 30 paisas versus the euro for buying and selling at Rs 143.30 and Rs 145.30, they said.
On Thursday, the rupee was unchanged in relation the dollar for buying and selling at Rs 124.00 and Rs 124.50, they said. While, the rupee lost 70 paisas versus the euro for buying and selling at Rs 144.00 and Rs 146.00, they said. On Saturday, the rupee was unmoved in terms of the dollar for buying and selling at Rs 124.00 and Rs 124.50, they said. While, the rupee lost 50 paisas versus the euro for buying and selling at Rs 144.50 and Rs 146.50.
OVERSEAS: In the first Asian trade, the euro slipped back in Asian trade on Monday after German Chancellor Angela Merkel was dealt a fresh blow when her interior minister offered to quit in an escalating row over migration policy.
The dollar was trading against the Indian rupee at Rs 68.630, the greenback was at 4.038 versus the Malaysian ringgit and the US currency was available at 6.646 in relation to the Chinese yuan. Inter bank buy/sell rates for the taka against the dollar on Monday: 83.75-83.75 (Previous 83.70-83.75).
In the second Asian trade, the dollar eased marginally against its peers on Tuesday, as the euro steadied after partners in Germany's coalition settled a row over migration that had threatened to topple Chancellor Angela Merkel's government. The dollar index against a basket of six major currencies inched down 0.1 percent to 94.955 after gaining about 0.45 percent the previous day.
The dollar was trading against the Indian rupee at Rs 68.865, the greenback was at 4.047 in terms of the Malaysian ringgit and the US currency was available at 6.6660. Inter bank buy/sell rates for the taka against the dollar on Tuesday: 83.75-83.75 (Previous 83.70-83.75). In the third Asian trade, major currencies marked time on Wednesday and the Chinese yuan recovered from 11-month lows after authorities took steps on Tuesday to calm financial markets rattled by trade war worries.
In the fourth Asian trade, major currencies were on tenterhooks on Thursday on the eve of Washington's deadline to impose tariffs on Chinese imports while the yuan held steady after the central bank this week sought to stem its recent tumble.
The dollar was trading against the Indian rupee at Rs 68.855, the greenback was at 4.044 in terms of the Malaysian ringgit and the US currency was at 6.641 in relation to the Chinese yuan. In the final Asian trade, the dollar stood little changed against its peers on Friday and investor caution prevailed with US tariffs on Chinese goods taking effect and market participants turning their attention to the closely-watched US jobs report due later in the day.
The first salvos of a trade conflict between the world's biggest economic powers were fired on Friday with US tariffs on $34 billion in Chinese goods coming into effect. Focus now shifts to retaliatory measures The dollar index against at basket of six major currencies was mostly steady at 94.388 after slipping to 94.177, its lowest since June 26, the previous day.
The dollar was available against the Indian rupee at Rs 68.893, the greenback was at 4.042 versus the Malaysian ringgit and the US currency was at 6.656 in terms of the Chinese yuan. In the final NY trade, the dollar hit three-week lows on Friday after data showed the US economy created more jobs than expected in June, but a closely watched inflation gauge - wage growth - rose less than forecast and the unemployment rate increased.
As a result, expectations dimmed somewhat that the Federal Reserve would raise interest rates a fourth time this year. The greenback had weakened earlier on Friday as the United States and China imposed tariffs on each other's imports, but the fall was muted as investors waited for the jobs report. US non-farm payrolls advanced by 213,000 jobs in June, the Labor Department said. Data for April and May was revised to show 37,000 more jobs created than previously reported. The unemployment rate, however, rose to 4.0 percent from an 18-year low of 3.8 percent in May, while average hourly earnings rose 5 cents, or 0.2 percent, in June after increasing 0.3 percent in May.