{"id":35672,"date":"2017-12-08T13:28:54","date_gmt":"2017-12-08T08:28:54","guid":{"rendered":"https:\/\/tns.world\/?p=35672"},"modified":"2017-12-08T13:28:54","modified_gmt":"2017-12-08T08:28:54","slug":"market-wakes-up-to-sharp-rise-in-us-dollar-rate","status":"publish","type":"post","link":"https:\/\/tns.world\/?p=35672","title":{"rendered":"Market wakes up to sharp rise in US dollar rate"},"content":{"rendered":"

KARACHI Dec 08 (TNS):<\/strong> The market was caught off guard today after both the interbank and open market rates of the US dollar saw a substantial rise.<\/p>\n

At the start of the day, the\u00a0US dollar rate had increased by Rs4.5 in the interbank market and Rs1.5 in the open market.<\/p>\n

However, the US dollar is trading at around Rs106.5 in the interbank market and between Rs107.8 and Rs108.8 in the open market.<\/p>\n

A spokesperson for the State Bank of Pakistan (SBP) said that market forces set the rate of the dollar, after keeping in view the demand and supply.<\/p>\n

He added that they are keeping an eye on the situation.<\/p>\n

The spike in the dollar rate caught the market by surprise, especially since the SBP announced on Thursday that it had received $2.5 billion earned from the recent issuance of euro and sukuk bonds.<\/p>\n

Last week, Pakistan raised $1 billion in a five-year Sukuk and $1.5 billion in ten-year Eurobond transactions.<\/p>\n

Normally when supply increases, like it did yesterday, the market stabilises as the balance of payments increases.<\/p>\n

However, analysts said that the current account deficit and related factors were building pressure on the economy which resulted\u00a0in today’s incident.<\/p>\n

Economist Muzammil Aslam told the dollar rate increase leads to a\u00a0rise in prices of food items, petrol and services.<\/p>\n

He said that a positive aspect of the increase in the dollar rate is that the country’s exports, which have dipped in the past several years, can increase along with the country’s industrial output.<\/p>\n

Aslam also said that today’s move could also be a result of the delayed devaluation of the Pakistani Rupee, which has been delayed for over a year.<\/p>\n

Moreover, on Thursday, the ongoing political uncertainty in the country took its toll on the Pakistan Stock Exchange, with the KSE-100 index falling more than 1,100 points.<\/p>\n

Around 3pm on Thursday, the benchmark index was less than 38,770 points after a fall of more than 1,100 points.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

KARACHI Dec 08 (TNS): The market was caught off guard today after both the interbank and open market rates of the US dollar saw a substantial rise. At the start of the day, the\u00a0US dollar rate had increased by Rs4.5 in the interbank market and Rs1.5 in the open market. However, the US dollar is […]<\/p>\n","protected":false},"author":1,"featured_media":35673,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[729],"class_list":["post-35672","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/tns.world\/index.php?rest_route=\/wp\/v2\/posts\/35672","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tns.world\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tns.world\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tns.world\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tns.world\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35672"}],"version-history":[{"count":1,"href":"https:\/\/tns.world\/index.php?rest_route=\/wp\/v2\/posts\/35672\/revisions"}],"predecessor-version":[{"id":35674,"href":"https:\/\/tns.world\/index.php?rest_route=\/wp\/v2\/posts\/35672\/revisions\/35674"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tns.world\/index.php?rest_route=\/wp\/v2\/media\/35673"}],"wp:attachment":[{"href":"https:\/\/tns.world\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35672"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tns.world\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35672"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tns.world\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35672"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}