Pakistani Rupee Strengthens Against the US dollar

$150 billion

Pakistani rupee has strengthened against the US dollar as the dollar has declined by 31 paisa against PKR in interbank and 50 paisa in the open market. Now Pakistani rupee stands at Rs123.40 in interbank and at Rs121.50 in the open market against the dollar.

Reportedly China had agreed to immediately lend $2 billion to Pakistan which has also played a role in strengthening the position of Pakistani Rupee against the dollar.

Hong Kong’s Hang Seng .HSI dropped by 1.5% while Shanghai Composite Index .SSEC dropped 1.3%. It seems that the present trade conflict going on between US and China has affected Chinese equities.

Linus Yip, a Hong Kong-based analyst at First Shanghai Securities said, “Investors tend to focus on negative aspects of listed companies’ first-half reports, as there are much pessimism and caution in a falling market.”

Similarly, Japan’s Nikkei .N225 also fell by 1%. The lira TRYTOM=D3 dropped to the record low of 7.24 against the dollar when the week started.

Turkish President Tayyip Erdogan said that Ankara will boycott electronic items from the USA.

Vice President Fuat Oktay tweeted, “The import duties were increased on some products, under the principle of reciprocity, in response to the U.S. administration’s deliberate attacks on our economy.”

Read more: Pakistan’s current power shortfall is Zero

Carl Weinberg, the chief international economist at High-Frequency Economics said, “The lira rallied yesterday, but there is not remedial plan for Turkey’s internal and external imbalances. Europe’s banks will have to reserve more against these potential losses, and already low capital adequacy ratios will be tested.”

Earlier immediately after the Pakistan General Elections, 2018 Rupee strengthens by 4.3% against the dollar in the open market, which is the best gain ever attained.

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