Pakistan Rupee Falls to a Record on Speculation IMF Loans Needed

[Big Boss]

Pakistan Rupee Falls to a Record on Speculation IMF Loans Needed

Pakistan’s rupee fell to a record on a Wall Street Journal report, rebutted by the central bank, that the nation may seek loans from the International Monetary Fund to pay debts.

The South Asian country’s trade deficit could make it difficult to meet more than $4 billion in loans coming due in the fiscal year starting July, the newspaper reported on May 29, citing State Bank of Pakistan Governor Yaseen Anwar. The currency dropped as much as 1.3 percent, the most since 2009, before the central bank issued a rebuttal, saying there is “no risk in being able to make next year’s IMF payments from our adequate reserves.”

The rupee slid 0.9 percent to 93.8350 per dollar as of 2:21 p.m. in Karachi, according to data compiled by Bloomberg. The currency has dropped 4.1 percent this year as Pakistan tries to mend a fractious relationship with its main aid provider, the U.S., which scaled back funds over differences on how to stop militant groups from operating in the country’s tribal areas.

“People went into a little panic on political developments such as Pakistan-U.S. relations and payment to IMF,” said Malik Bostan, the Karachi-based president of the Forex Dealers Association. “Many people are converting rupee into other currencies to prevent exchange losses.”

Pakistan Rupee Falls to a Record on Speculation IMF Loans Needed - Bloomberg

 

[Jango]

From 66 to around 95, in 4.5 years!!!

Go Democracy! Jeay Bhutto! Pakistan Khappay Khappay Khappay!

 

[Imran Khan]

big boss tu apny indian rupee ki soch .that was record low too today why not a thread on it?

Indian Rupee rebounds to close at 56.09/$, steepest monthly fall in 6 months
NDTV, 31 May 2012 | 05:10 PM
le
Video
Expect Rs 100 crore turnover from the pulse business: Tata Chemicals
5:16

The rupee rebounded from record lows on Thursday after hitting a record intraday low of 56.52 against the dollar. It is now the worst performing Asian currency this year, falling 6.35 per cent in the month of May, the biggest monthly fall in six months.



The Indian rupee ended stronger at 56.09/$ from Wednesday’s record closing low of 56.23/24 per dollar on the back of some genuine dollar sales. Euro too rebounded in trade against dollar, providing support to the Rupee.



Global stock markets too supported the Indian currency after opening higher in trade.



The rupee opened lower on Thursday at 56.50 and fell further to hit a record low of 56.52, continuing its downward momentum against the US dollar. At 3:05 p.m., the rupee traded stronger against the dollar at 55.79, up 44 paise from the previous close.



However, there was a sudden spike at around 3:15 p.m. on rumors that RBI has asked oil companies to buy dollars from 3-4 PSU banks. But, RBI sources and oil companies told NDTV that no such direction has been given.





India’s gross domestic product (GDP), which grew at a much lower rate of 5.3 per cent in the January-March quarter, was expected to drag the rupee further. However, it did not affect the rupee, which continued to trade near the lows hit before the data announcement.



Domestic bond yields also retreated, while stocks fell, on the last day of a rough month for Indian markets, as the weak sentiment from the euro zone woes has exposed the country's fiscal and economic vulnerabilities. India's 10-year bond yield was at 8.37 per cent, down 15 basis points on the day.



The Indian currency has seen choppy trade this month, as oil importers ramped up demand for the greenback ahead of the end of the month, while global risk assets were hit by worries about Spain’s soaring borrowing costs and expectations that more spending may be needed to support its ailing banks. Risk aversion deepened over continued euro zone worries, setting up expectations about potential intervention from the Reserve Bank of India. The Euro too hit a two-year low on Wednesday.



The perception of slowing policy reforms has further compounded the losses. A nationwide strike is planned for Thursday to protest the government's recent decision to allow petrol prices to be hiked, an action that at first had been welcomed by markets as a gesture of fiscal consolidation.



The rupee's fall to all-time lows has set up expectations about potential intervention from the Reserve Bank of India, though most traders said they had not spotted any significant dollar-selling via state-run banks on Thursday.



"Unless the RBI keeps coming in with measures, the rupee will continue to remain under pressure. There are still a huge amount of open importer positions remaining," said Subramanian Sharma, director at Greenback Forex.



The Reserve Bank of India was believed to have intervened in spot and forward markets when the rupee hit seven consecutive record lows over the previous two weeks. On Wednesday, traders cited strong dollar demand from oil importers looking to meet their commitments at the end of the month.



The BSE Sensex fell 1 per cent in early trade, after having fallen 6.7 per cent this month as of Wednesday's close, though the fall was not as steep as the 11.8 per cent drop seen in a broader MSCI index of Asia-Pacific shares excluding Japan. It hit the lowest point of the day after data indicated that the Indian economy grew at a slower than expected pace in the March quarter.



However, a recovery in the rupee and modest gains across European stocks helped the Sensex close off the day's low Thursday. It ended 93.62 points or 0.57 per cent lower at 16,218.53, while the broader Nifty index declined 26.50 points or 0.54 per cent to 4,924.



Meanwhile, Moody's said that significant depreciation of the Indian rupee is insignificant for India's sovereign credit. "Government foreign currency debt comprises only 7 per cent of total government debt and 5 per cent of GDP. Most of it is owed to multilateral and bilateral creditors and has a maturity profile that keeps annual foreign currency repayments relatively low. Therefore, the direct effect of depreciation on the government’s own debt repayment capacity is limited," Moody's said in a report.



The rupee has been depreciating to new lifetime lows on increased dollar demand from importers, especially oil refiners coupled with capital outflows from foreign funds. Even selling of the American currency by exporters and banks failed to check persistent fall.



Dollar has been appreciating against a basket of currencies worldover. Dollar Index has hit a 20 month high in trade, while Euro has been depreciating, down over 5 per cent this month against the US dollar and Yen.



According to Standard Chartered, Rupee may drag to 58.60 levels against the dollar on account of technical weakness. Morgan Stanley, however, expects rupee to cross levels of 60 and touch 62.70/$.



India's slower than expected growth rate will further complicate matters for the RBI, which is faced with growing calls for more rate cuts despite its continued concerns about inflationary pressures. It had delivered a 0.5 per cent cut in the repo rate last month, but analysts had expected the central bank from refraining to further lower India's main lending rate until later in the year.

 

[KRAIT]

Seems like we all are in same sh*t.

 

[Haseebullah]

And in another news PM said"Aaj jumhoriat ki jeet hoye hai!"

Jumhoriat ki jeet my arse.

 

[KRAIT]

Areeee pakistaniyon...hum tumhari government hatate hain tum hamari hata do. Kambhakht dono deshon ko barbaad kar di kalmuhon ne.

 

[Imran Khan]

Areeee pakistaniyon...hum tumhari government hatate hain tum hamari hata do. Kambhakht dono deshon ko barbaad kar di kalmuhon ne.

nhi nhi you have to taste UPA more 2 years .our elections are very near .no deal

 

[KRAIT]

nhi nhi you have to taste UPA more 2 years .our elections are very near .no deal

 

[Great Sachin]

There are so many thread opened by you guys on Indian Rupee....and love to add masala posts on those threads

Now we are showing you your reality..and you are getting irritated....Pathetic

 

[Haseebullah]

There are so many thread opened by you guys on Indian Rupee....and love to add masala posts on those threads

Now we are showing you your reality..and you are getting irritated....Pathetic

eh,..basic human nature!

 

[RazPaK]

There are so many thread opened by you guys on Indian Rupee....and love to add masala posts on those threads

Now we are showing you your reality..and you are getting irritated....Pathetic

Sitting here in the US makes me feel terrible for my countrymen.

In my city today it was 50 degrees celsius. No electricity or anything.

On top of that inflation. People are buying ice just to stay alive.

 

[Jango]

Now the thing is that we don't say 'Ajj kitni der bijli gayi', we say 'Aaj kitni der bijli ayi?!'

 

[Big Boss]

big boss tu apny indian rupee ki soch .that was record low too today why not a thread on it?

Indian Rupee rebounds to close at 56.09/$, steepest monthly fall in 6 months
NDTV, 31 May 2012 | 05:10 PM
le
Video
Expect Rs 100 crore turnover from the pulse business: Tata Chemicals
5:16

The rupee rebounded from record lows on Thursday after hitting a record intraday low of 56.52 against the dollar. It is now the worst performing Asian currency this year, falling 6.35 per cent in the month of May, the biggest monthly fall in six months.



The Indian rupee ended stronger at 56.09/$ from Wednesday’s record closing low of 56.23/24 per dollar on the back of some genuine dollar sales. Euro too rebounded in trade against dollar, providing support to the Rupee.



Global stock markets too supported the Indian currency after opening higher in trade.



The rupee opened lower on Thursday at 56.50 and fell further to hit a record low of 56.52, continuing its downward momentum against the US dollar. At 3:05 p.m., the rupee traded stronger against the dollar at 55.79, up 44 paise from the previous close.



However, there was a sudden spike at around 3:15 p.m. on rumors that RBI has asked oil companies to buy dollars from 3-4 PSU banks. But, RBI sources and oil companies told NDTV that no such direction has been given.





India’s gross domestic product (GDP), which grew at a much lower rate of 5.3 per cent in the January-March quarter, was expected to drag the rupee further. However, it did not affect the rupee, which continued to trade near the lows hit before the data announcement.



Domestic bond yields also retreated, while stocks fell, on the last day of a rough month for Indian markets, as the weak sentiment from the euro zone woes has exposed the country's fiscal and economic vulnerabilities. India's 10-year bond yield was at 8.37 per cent, down 15 basis points on the day.



The Indian currency has seen choppy trade this month, as oil importers ramped up demand for the greenback ahead of the end of the month, while global risk assets were hit by worries about Spain’s soaring borrowing costs and expectations that more spending may be needed to support its ailing banks. Risk aversion deepened over continued euro zone worries, setting up expectations about potential intervention from the Reserve Bank of India. The Euro too hit a two-year low on Wednesday.



The perception of slowing policy reforms has further compounded the losses. A nationwide strike is planned for Thursday to protest the government's recent decision to allow petrol prices to be hiked, an action that at first had been welcomed by markets as a gesture of fiscal consolidation.



The rupee's fall to all-time lows has set up expectations about potential intervention from the Reserve Bank of India, though most traders said they had not spotted any significant dollar-selling via state-run banks on Thursday.



"Unless the RBI keeps coming in with measures, the rupee will continue to remain under pressure. There are still a huge amount of open importer positions remaining," said Subramanian Sharma, director at Greenback Forex.



The Reserve Bank of India was believed to have intervened in spot and forward markets when the rupee hit seven consecutive record lows over the previous two weeks. On Wednesday, traders cited strong dollar demand from oil importers looking to meet their commitments at the end of the month.



The BSE Sensex fell 1 per cent in early trade, after having fallen 6.7 per cent this month as of Wednesday's close, though the fall was not as steep as the 11.8 per cent drop seen in a broader MSCI index of Asia-Pacific shares excluding Japan. It hit the lowest point of the day after data indicated that the Indian economy grew at a slower than expected pace in the March quarter.



However, a recovery in the rupee and modest gains across European stocks helped the Sensex close off the day's low Thursday. It ended 93.62 points or 0.57 per cent lower at 16,218.53, while the broader Nifty index declined 26.50 points or 0.54 per cent to 4,924.



Meanwhile, Moody's said that significant depreciation of the Indian rupee is insignificant for India's sovereign credit. "Government foreign currency debt comprises only 7 per cent of total government debt and 5 per cent of GDP. Most of it is owed to multilateral and bilateral creditors and has a maturity profile that keeps annual foreign currency repayments relatively low. Therefore, the direct effect of depreciation on the government’s own debt repayment capacity is limited," Moody's said in a report.



The rupee has been depreciating to new lifetime lows on increased dollar demand from importers, especially oil refiners coupled with capital outflows from foreign funds. Even selling of the American currency by exporters and banks failed to check persistent fall.



Dollar has been appreciating against a basket of currencies worldover. Dollar Index has hit a 20 month high in trade, while Euro has been depreciating, down over 5 per cent this month against the US dollar and Yen.



According to Standard Chartered, Rupee may drag to 58.60 levels against the dollar on account of technical weakness. Morgan Stanley, however, expects rupee to cross levels of 60 and touch 62.70/$.



India's slower than expected growth rate will further complicate matters for the RBI, which is faced with growing calls for more rate cuts despite its continued concerns about inflationary pressures. It had delivered a 0.5 per cent cut in the repo rate last month, but analysts had expected the central bank from refraining to further lower India's main lending rate until later in the year.

1. What ur doing is called shameless off topic thread derailment and according to the PDF rules u shpuld be banned for posting off topic as Mods will do it if we post something like it.

2. This is a special section for pakistan's economy that's why I have posted the current and most appropriate news in proper section with links.

3. India is off topic still to answer u, It must be remember that India's rupee falls from 45 to 55 (like other International currencies) but pakistani rupees felled from Rs. 66 to 96 that's very very huge.

 

[OrionHunter]

From 66 to around 95, in 4.5 years!!!

Go Democracy! Jeay Bhutto! Pakistan Khappay Khappay Khappay!

Don't worry! India's playing catch-up! We'll pip you to the post before the year runs out!

 

[regular]

Now the thing is that we don't say 'Ajj kitni der bijli gayi', we say 'Aaj kitni der bijli ayi?!'

Yeah U right! cuz we don't even deserve Bijli as we never put into any good use except for wasting it all the times......

Anywayz thanks to this democrazy govt to help us get rid of this damn Bijli........tomorrow they gonna help us get rid of our lives too cuz poverty killing everybody nowadayz.......