Karachi October 7 2022: Pakistan Rupee continue to appreciate for the eleventh consecutive session in interbank against dollar and falls below 220 after 28 trading sessions or first time since August 2022 on expectation of aid flows from international financial institutions amid strict state bank actions against the currency manipulators despite Moody’s negative outlook report card for Pakistan.
The United Nations has scaled up appeal for the ‘Floods Response Plan’ in Geneva, seeking $816 million to control a surge in water-borne diseases following the country’s worst floods in decades.
“Pakistan Rupee be below level of 200 against the dollar by the end of this month and we will not opt for debt rescheduling of Paris club debt as our external financing meets are fully met for this fiscal year” says Pakistan’s newly appointed Finance Minister Ishaq dar.
Pakistan Rupee appreciate PKR 2.15 or 0.97 percent in interbank to trade at 219.79 at PST 11:05 against yesterday closing of 221.94. In the last ten consecutive session rupee gains PKR 17.77 or 8.0% from recent low of 239.71.
However, In Open Market Rupee is trading at 225.5 at PST 11:05, according to Forex Association of Pakistan.
The Asian Development Band (ADB) will provide flood relief support to Pakistan to the tune of US$ 2.3 to 2.5 billion including US$ 1.5 billion for the BRACE program which will be placed before the ADB Board for approval during this month says Country Director ADB for Pakistan Yong Ye told Finance Minister Senator Mohammad Ishaq Dar.
The State Bank has also been asked by lower house to take appropriate action against elements involved in exchange rate manipulation so that no one dares to play with the economy of the country.
The SBP taking cognizance initiated strict monitoring of the foreign exchange operations of banks and exchange companies and has initiated inquiry proceedings into the violations made against SBP regulations.
Moody’s Investors Service (“Moody’s”) downgraded the Government of Pakistan’s local and foreign currency issuer and senior unsecured debt ratings to Caa1 from B3. Moody’s has also downgraded the rating for the senior unsecured MTN programme to (P)Caa1 from (P)B3. The outlook remains negative.
The decision to downgrade the ratings to Caa1 is driven by increased government liquidity and external vulnerability risks and higher debt sustainability risks, in the aftermath of devastating floods that hit the country since June 2022.
The dollar held onto strong overnight gains on Friday, buoyed by hawkish Federal Reserve speakers and as investors looked to a key jobs report later in the day for clues on how much further U.S. rates would need to rise, Reuters reported. The U.S. dollar index firmed to 112.22, after rising nearly 1% overnight, moving away from a low of 110.05 hit earlier in the week.
