Rupee Gains Big Against US Dollar 5th Day in A Row With ‘Darnomics’ in Full Swing

The Pakistani Rupee (PKR) strengthened against the US Dollar (USD) and posted big gains during intraday trade today.

It appreciated by 1.08 percent against the USD and closed at Rs. 229.63 after gaining Rs. 2.49 in the interbank market today. The local unit quoted an intra-day low of Rs. 232 against the USD during today’s open market session.

The local unit was all green at open and was trading at 231.95 at 10 AM. By midday, the greenback went as low as 229.00 against the rupee. After 2 PM, the local unit stayed at the 229-230 level against the top foreign currency before the interbank close.

The rupee continued its massive run against the dollar for the fifth consecutive day today after the new finance minister “bravely” called out speculators toying with the local currency.

The new finance chief, who has previously advocated for intervention in currency markets, also claims that the value of the local unit is undervalued and that he will seek to control inflation by lowering interest rates.

Dar has also warned currency speculators against manipulating the market.

Money managers have tied the rupee’s ongoing recovery to Dar’s return from self-exile after five years. The minister is well-known for defending the value of the national currency. However, given the strengthening of the US dollar globally, Pakistan’s low foreign exchange reserves, and high foreign debt payments, some experts believe the rupee’s recovery will be short-lived.

Pakistan’s dollar bonds fell on Wednesday after Ishaq Dar hinted at slashing interest rates on the very first day of taking charge as the finance minister. Last week, Pakistan’s dollar bonds fell after Prime Minister Shehbaz Sharif made an urgent appeal for debt relief from the rich countries in the wake of one of the worst floods in the country’s history.

Globally, oil prices fell on Thursday, with a stronger dollar canceling out the previous day’s more than $3 gain, though losses were limited by signs that the OPEC+ producer group may reduce output.

Brent crude was down by 0.24 percent at $89.16 per barrel, while the US West Texas Intermediate (WTI) fell slightly by 0.16 percent to settle at $82.02 per barrel.

Both benchmarks had recovered from nine-month lows earlier in the week, helped by a temporary drop in the dollar index and a larger-than-expected drawdown in US fuel inventories. The dollar index, however, rose again on Thursday, dampening investor risk appetite and fueling recession fears.

The PKR gained further against most of the other major currencies in the interbank market today. It gained 15 paisas against the Euro (EUR), 36 paisas against the Pound Sterling (GBP), 68 paisas against the UAE Dirham (AED),68 paisas against the Saudi Riyal (SAR), and 97 paisas against the Canadian Dollar (CAD).

Conversely, it lost seven paisas against the Australian Dollar (AUD) in today’s interbank currency market.

  • It’s all making public chootia. A dakoo cannot control Dollar, he can only do TT as what he did in the past.

    • Fuzool comments, that is a politics, as you go deep dive, cases and allegations Increases ,how u can say he is a daakoo,just on behalf of niazi ,who is hungry of power.

  • جو دکھتا ہے وہ ھوتا نہیں اور جو ھوتا وہ دکھتا نہیں ۔۔۔۔۔۔

  • Bulll crap! واردات نمبر (1)
    مقامی مارکیٹ سے سرکاری خزانے سے ڈالرز خرید کر ڈالر مہنگا کیا گیا
    تاکہ اسحاق ڈار کی واپسی پر وہی ڈالر دوبارہ مارکیٹ میں پھینک کر ڈالر سستا کیا جا سکے گا
    اور دو دن پہلے یہی کیا گیا
    (واردات نمبر 2 )
    عالمی منڈی میں تیل کی قیمتیں کم ترین سطح پر ہونے کے باوجود تیل‏ سستا نہیں کیا گیا
    تاکہ اسحاق ڈار خود آ کر تیل سستا کرے اور عوام کو لگے کہ ریلیف ملا ہے
    (واردات نمبر 3 )
    مفتاح اسمعیل کو جان بوجھ کر ہاتھ سخت رکھنے کا حکم تھا تاکہ اسحاق ڈار کی واپسی کا جواز پیدا کیا جا سکے
    (وارادت نمبر 4)
    اسحاق ڈار شروع میں ریلیف دے گا
    عوامی اعتماد بحال کرنےکی کوشش کرے گا
    ہو سکتا ہے بجلی بھی کچھ سستی کی جائے، مہنگائی میں کچھ وقفہ آئے
    مگر نومبر گزرتے ہی آپ مفتاح اسمعیل کو بھول جائیں گے
    ( واردات نمبر 5 )
    غیر ملکی قرضوں کے علاؤہ مقامی بینکوں سے بے تحاشا قرض لیا جائے گا
    لوٹ مار کے باقی ماندہ سب کیسز بھی اڑا دئیے جائیں گے

    لہذا وقتی ریلیف سے دھوکا مت کھائیے
    میڈیا آپ کو سب اچھا دکھانے کی بھرپور کوشش کرے گا –
    عوام کو مگر ہر صورت ہوشیار رہنا ہو گا
    چور نے صرف طریقہ بدلا ہے
    مقصد چوری کرنا ہی ہے !!

  • The rupee has lost a lot against dollar.In April the rupee value was 180 even that was also too much high price.
    Now Dar has not done anything big,once the price of dollar is less than 180 rupees then it will come to the comparison And if he is so kind to this nation then bring the rupee to 120

  • Its all febrication..they had big stock of dollars like a heap of rabbish..they put that in market and due to huge inflow..naturely dollar rate will be down..there is no other magic at all.

  • See time is proving that whatever Pakistan is facing in the shape of crises i. e. Inflation, poverty, corruption, mafiaism etc etc all big shots are behind them. Unfortunately people of Pakistan is deaf and blind and they will never wakeup untill this country will become somalia

  • Jab doller aasman ko chu raha tha tab mot padi hue thi tum sab ko q ke tum sab kama rahe the tumara hisa barabar mil raha tha ab jab ye budha chor daku aya hai to jo rate es mafia ne rakhe hue the 10 15 ya 20 rupay kam karke konsa ahsan kar raha hai magar hone wala kuch nahe vote to imran Khan ko he melega

  • I think rupee recovery against dollar will be short lived and dollar value will spike against rupee soon. Global macro economic environment is in the favour of stronger dollar going forward.

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