Rupee Gains Big Against US Dollar As ‘The Prodigal Son’ Returns [Updated]

The Pakistani Rupee (PKR) showed early signs of recovery against the US Dollar (USD) and posted massive gains during intraday trade today amid market sentiments that Ishaq Dar is returning to take over as the Finance Minister of Pakistan.

At close, the PKR had gained 1.1 percent and suspended movements at Rs. 237.02 after gaining Rs. 2.63 in the interbank market today. The local unit quoted an intra-day low of Rs. 239.85 against the USD during today’s open market session.

Also, the local unit gained further ground after global crude oil markets witnessed a massive decline today. Brent crude was down by 1.81 percent at $84.59 per barrel, while the US West Texas Intermediate (WTI) went down by 1.79 percent to settle at $77.33 per barrel.

Meanwhile, equities had an early surprise after markets opened trade in the green today. After opening trade at 40,620.21 points, the market showcased bullish sentiments, with the benchmark KSE-100 index gaining over 400 points after rising to a high of 41,031.19 points around midday.

By midday, the local unit had gained Rs. 7 against the greenback and was trading at Rs. 232.65 in the open market. This is the highest intraday gain in over a month. Despite today’s gains, the dollar is up by Rs. 39.54 (intraday) against the PKR.

The rupee showed similar (but much better) signs of sharp recovery back on 3 August when it gained over Rs. 11 against the greenback to below 227, its highest ever single day again since research institutions started recording currency data in Pakistan.

The US$ initially gradually lost ground on Friday after the rupee — one of the world’s poorest performing currencies — fell for 15 straight sessions and depreciated by about 9 percent till last week. However, bulls took control of the currency during early trade today after news of Pakistan’s former finance minister returning to home soil.

Ishaq Dar was “well known” for maintaining exchange rate parity during his tenure as the country’s finance minister. However, the recovery may be fleeting this time as the dollar strengthens in international markets and Pakistan’s funding requirements remain unmet.

For a long time, Dar kept the dollar rate fixed at Rs. 90-95. Money changers anticipate that speculation in the interbank market will be curtailed once Dar is appointed minister which will most likely boost the rupee’s value.

Other Currencies

The PKR reversed losses against the other major currencies in the interbank market today. It gained 71 paisas against the UAE Dirham (AED), Rs. 2.84 against the Canadian Dollar (CAD). Rs. 3.73 against the Australian Dollar (AUD), Rs. 4.78 against the Euro (EUR), and Rs. 12.65 against the Pound Sterling (GBP).

Moreover, it gained 69 paisas against the Saudi Riyal (SAR) in today’s interbank currency market.

  • yeah that’s how they fool the common man… all their invester is sitting in stock market and manipulating the market on their command…

    • lol then how come a CD 70 which costed 66k in 2014 dropped to 62k in 2016 and how come the GDP and per capita income increased if markets are only manipulated on their command have some sense yr they are beyond corrupt but atleast stick to the facts they indeed performed well in their last tenure let’s wait then we can criticize them

      • logic of one bike cannot defy that their tenure was perfect… the thing they’re best at is take on projects and funding like say construction of an underpass or your fav motor way, money launder half and put in rest in the road.. the main issue is we are not coming out of IMF interest soaked money which is btw haram in islam and that debt is choking our country, we can’t repay old debt then take on new debt as well… which if we can recollect our memory IMF was involved in pakistan economy in 2014 to 2016 timeframe as well… I’m no fan of any politicians that includes PTI who also failed miserably when they overpromised and instantly took uturns, just saying it’s time to teach these monkeys a lesson instead of falsly glorifying them… Who says there is shortage of petrol but then are getting untlimited supply of free petrol as allowance, when dollar doubles their salary triples… who are even shy to pay small 10/20 rupee token toll fee and just got their way to pay out of that as well… why? because they’re incompetent and don’t know abc about their jobs and failing country at lightning speed? when a normal person does a bad job he/she get fired, these monkeys get their salaries multiplied and don’t get me started on their private businesses…

        • you are again taking my point out of context, try to examine the situation first and then comment I agree on the corruption part but indeed they performed well during their last tenure and I am not only giving example of one bike, you can checkout Statebank and Finance division reports as well about the commodity, basic necessities prices during their tenure how sharply they go down after 2014 I just use bike as an example, even cars, food items, wheat, sugar, prices were down, also we cannot teach them any lesson the system will always protect them and we always will be discussing our miseries like this, because corruption will never stop even we hear stories of corruption from developed nation as well but what they ensure is that the cycle of development should always be working and here every govt has their own agenda profitable projects are removed and same projects are initiated in other cities
          example of Lahore metro is there, our own PTI criticize it for years and then developed the most expensive version of this project in KPK
          I know my comment will smoke some bums of my own PTI fellows but you have IK’s example today :-D how he is trying hard to get his support back even criticizing every dept
          in conclusion we cannot progress until we start accepting and appreciating if someone has done some good for this country and it’s economy

      • Wen u manipulate the markets, u get short term relief. Long term it bites back. What Pakistan needs is not a magician ;but sound economic policies for long term growth and stabilisation.
        In the dirty world of politics, if they can prove their sources of income with cross reference with their tax returns. They are innocent. Everything else is manipulation ;be it media, judiciary, puppet masters etc. PLEASE ALL PAKISTANI S SUPPORT PAKISTAN. QUESTION EVERY ACTION OF POLITICIAN S, TO KEEP CHECK AND BALANCE S. SINCE 1947 WE HAVE NOT BEEN BLESSED WITH LEADER FOR THE PEOPLE, BUT ALI BABA GROUP. ASK THE PERSON WHO’S CHILDREN GO THROUGH RUBBISH DUMPS TO SELL TO EAT

  • its hard to digest this analysis when so many factors are in play. But some are going to spin it this way. This could just as well be a reaction of oil price drop, nothing to do with the return.

  • Mr. ADMIN OF PRO PAKISTANI.. Buly promoting this money launderer, u r acting as anti-Pakistani… How much money you have charged by promoting guest post to promote this money launderer??? For ur this act of anti-Pakistani, As a protest I am blocking your website from my browser and in every browser I get access..

  • The real uturns are taken by journalists they should b neutral not lotaacrates …
    Rupee gains big such a lame joke

  • It seems that this particular news have put bums of youthiyas in oven. It’s always pleasing to see them screech like this.
    Wether through any trick or through artificial means, dar was able to keep dollar price in check; that does demand respect. (Those proud of their bajis dancing vulgarly publicly, know nothing about respect,)
    Nation is facing today’s hardships for 3 and half years of ineptness and incompetence of niazi era.

  • Isaq dar left economy in a mess, until PTI rescued it, was 150 to a dollor, now it is 233. Dar is corrupt and convicted, he will ruin the economy further take it to 300 tp dollor

  • Kus pati neyo mulk da bera garak Kar detta ay. Tawadi may nu lull Kisi ghasti deo tatto. Ooo pain yakooo. Lull tawadi away aali nasl nu. Tawano Awam vote dewy lull na dewy khoti deyo tattiyoo.

  • A country where a peon job need to fulfill all the requirements, a fraudster comes back and become “wazeer e khazana” in couple of days. Highly disappointed situation much pity for the nation

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