Local currency was trading at Rs279.20 in early morning trade
Dollar Slides Against Rupee in Interbank Market. The value of dollar depreciated against the rupee by 20 paise in the interbank market on Tuesday, insiders said.
The local currency was being traded at Rs279.20 in the early morning trade. The market opened on Tuesday as Monday was a public holiday on account of Kashmir Day.
The dollar closed at Rs279.41 in the interbank market on Feb 2, according to the State Bank of Pakistan.
Last week, Dawn reported that currency experts were wary of shocks in the exchange rate market in March.
They added that the third quarter economic performance would determine the outlook for the last quarter and the entire fiscal year. They were of the view that the inflows of dollars were below market expectations.
According to Topline Securities, business confidence has made a remarkable recovery reaching 54.5 in Jan-2024 after a recent low of 39.2 in Sep-23.
“This sharp rebound signifies improving economic conditions, stability of the rupee against the US dollar, expectations of a decline in inflation, and anticipation of an interest rate reversal,” it said in a post on X on February 4.
“The confidence index considers both current business confidence and expected business confidence, incorporating factors such as inflation, employment, and capacity utilization,” it said.
PSX gains over 300 points in intraday trade
The benchmark index at the Pakistan Stock Exchange gained over 300 points in the intraday trade on Tuesday.
According to the PSX website, the KSE-100 index gained 350.25 points to reach at 63,353.16 levels at 10:18am.
In a statement, the Tresmark said: “The government, already allocating over 50% of the budget for debt servicing, is grappling with the challenge of curbing this financial bleed. Banks, however, have reaped the benefits, doubling their profits in the calendar year 2023.”
The firm warned that both domestic and foreign investors remain skeptical due to political uncertainties.
“The prevailing high-cost money, characterized by a base rate of 22%, poses challenges in making ventures profitable, reminiscent of the negative economic growth observed in FY23.”
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