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[ad_1] KARACHI: Plenty of our deep-rooted problems are getting exposed day by day. Most pertinent (if not the only one) being our inability to earn enough dollars to pay import bills. Our very dear bright former SBP deputy governor, Murtaza Syed, continues to contribute by writing to help the masses understand and hoping policymakers pay heed. One key point he highlights “spending beyond means” needs to be further delineated. However, for a change, let’s look at how we can “earn as per means”. There indeed are various ways for the state to attract dollars even in a dire situation as worse as today’s. One, Naya Pakistan Certificate (NPC): There is inordinate delay in revising the returns offered on both PKR and USD instruments. While domestic T-bill yields are kissing the 20% mark, rupee NPCs still yield a paltry 15sh% for a year. How difficult it is to link it to your monetary policy rate to re-price immediately. Similarly, the dollar-yielding NPC rates were revised upwards...

[ad_1] Last Updated: May 26, 2023, 23:53 IST New York, United States of America (USA) On Thursday US President Joe Biden expressed confidence about the talks, saying there will be no default and that recent talks had been productive.U.S. President Joe Biden and top congressional Republican Kevin McCarthy appeared to be closing in on an agreement ahead of a June 1 deadline that would raise the government's $31.4 trillion debt ceiling for two years. Treasury yields rose as investors rethought how long interest rates were likely to keep rising Wall Street and European shares rose on Friday as the White House and congressional Republicans worked on the final touches on a U.S. debt ceiling deal. Treasury yields rose as investors rethought how long interest rates were likely to keep rising. [US/] The MSCI world equity index, which tracks shares in 49 nations, gained 1% by 10:38 a.m. EDT (1438 GMT), but was still on track for a weekly loss. The index extended gains after U.S. data sh...

[ad_1] MUMBAI: The Indian rupee inched down on Thursday to a nearly eight-week low on the back of higher U.S. bond yields and a firmer dollar as risk sentiment improved on hopes of an imminent debt ceiling deal. The rupee was down at 82.4750 against the U.S. dollar, compared to its previous close of 82.38. It hit its lowest since March 24 at 82.4825. "The recent breakout of the U.S. dollar is giving a directional move in USD/INR and oil has also swung back, which is adding some pressure to the rupee," said Anand James, chief market strategist at Geojit Financial Services. "Rupee is moving to a consolidation zone after the recent weakness," James added. Meanwhile, U.S. Treasury yields rose overnight and the dollar index surged to an over seven-week high in the wake of positive signs on the debt ceiling negotiations and upbeat housing data. April housing starts data showed a surprise increase of 2.2% month-on-month. "At 1.40 million, the annualised level...

[ad_1] KARACHI: The Pakistani currency marked a remarkable surge, hitting an almost one-month high at Rs297.96 against the US dollar in the interbank market on Thursday. This upswing represents the currency’s seventh consecutive working day of gains, attributed to the ongoing crackdown against currency smugglers. According to data from the State Bank of Pakistan (SBP), the rupee recorded a fresh gain of 0.29%, equivalent to Rs0.86, closing at Rs297.96 against the greenback. This remarkable performance translates to an overall gain of almost 3%, or Rs9.14, in the past seven days. The currency’s rally also received indirect support due to speculation regarding an upward revision in the interest rate by the central bank. However, the SBP surprised the market by leaving its key policy rate unchanged at the present 22%. Also read   C/A deficit shrinks 79% over stagnant imports Another unexpected development emerged from Pakistan’s gold market. For the second consecutive working ...

[ad_1] ISLAMABAD: Pakistan is likely to seek a waiver from the International Monetary Fund (IMF) for violating the condition of restricting the difference between inter-bank and open market currency rates as the lender improves its assumption for the average dollar price to Rs300. Highly placed sources said that compared to July’s underlying assumption of Rs305.2 to a dollar, the IMF “is now assuming the average price of US currency at a little below Rs300 by June next year”. They said that due to the breach of the condition of keeping the gap between currency rates at banks and foreign exchange companies at 1.25%, Pakistan would have to secure a waiver from the IMF board for qualifying for the next loan tranche. It is expected that Pakistani authorities will win the wavier as the global lender seems positive about gradual improvements in the currency exchange market. Pakistan and the IMF have already concluded a staff-level agreement that will be followed by the board’s app...

[ad_1] KARACHI/PESHAWAR: When the military was called on to help defend the ailing rupee, licenced foreign exchange traders cheered while their black market rivals in the bazaars of Peshawar, Karachi and other cities shuttered their shops before they got taken away. The campaign against the informal market has worked. Tens of millions of dollars have poured back into interbank and open markets, dealers say, since raids on black market operators began on September 6. The rupee, which plumbed record lows on September 5, recovered to below 300 per US dollar on the open market earlier this week, rallying more than 10% from levels prevailing before the clamp down to stand even stronger than the official rate. While there have been other attempts to curb the black market when the rupee has been under stress, the latest push came after licenced dealers requested army chief General Asim Munir take action, rather than leave it solely to the civilian caretaker government. Called to I...

[ad_1] Rupee gains strength in closing trade. (File) The rupee appreciated 18 paise to close at 81.18 (provisional) against the US dollar on Friday on broad dollar weakness. However, weak domestic equities and a surge in crude oil prices capped sharp gains for the local currency, forex traders said. At the interbank foreign exchange market, the local unit opened strong at 81.24, and settled for the day at 81.18 (provisional), registering a rise of 18 paise over its previous close. During the trading session, the local unit witnessed an intra-day high of 81.09 and a low of 81.28 against the American currency. On Thursday, the rupee closed at 81.36 against the US dollar. The dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.21 per cent to 102.26. Global oil benchmark Brent crude futures rose 0.48 per cent to USD 86.57 per barrel. According to Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas, the Indian rupee appreciat...

[ad_1] Last Updated: July 12, 2023, 01:05 IST New York, United States of America (USA) Ready to be minted 50g gold ingots are pictured at the plant of refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022. (Reuters) Gold prices rise as dollar and bond yields decline ahead of U.S. inflation data. Spot gold set for third consecutive gain, eyes on consumer prices report Gold prices edged higher on Tuesday as the dollar and bond yields fell ahead of U.S. inflation data that could offer more cues on the Federal Reserve’s rate-hike path. Spot gold was up 0.4% at $1,931.83 per ounce by 02:11 p.m. EDT (1811 GMT), set for a third consecutive session of gains. U.S. gold futures rose 0.3% to $1,937.10. Making gold cheaper for holders of other currencies, the dollar index fell 0.3% to its lowest level since May 11. Benchmark 10-year U.S. Treasury yields also slipped. [USD/] [US/] “If we have a soft inflation reading, it will be positive for gold and prices might...

[ad_1] Last Updated: July 13, 2023, 02:03 IST New York, United States of America (USA) Spot gold was up 1.3% at $1,957.39 per ounce by 10:49 a.m. EDT (1449 GMT), while U.S. gold futures rose 1.3% to $1,963.00. (Reuters) Gold prices surge as cooling US inflation sparks hopes of a sooner-than-expected halt to the Federal Reserve's rate hike cycle Gold prices jumped more than 1% on Wednesday after signs of cooling inflation in the United States boosted hopes that the Federal Reserve could hit the brakes on its rate hike cycle sooner than previously thought. Spot gold was up 1.3% at $1,957.39 per ounce by 10:49 a.m. EDT (1449 GMT), while U.S. gold futures rose 1.3% to $1,963.00. U.S. consumer prices rose modestly in June and registered their smallest annual increase in more than two years as inflation continued to subside. In the 12 months through June, the CPI advanced 3.0%, compared with Reuters estimates of 3.1%. “Gold gapped $10 higher on the softer-than-expected CPI print on ...

[ad_1] Last Updated: July 12, 2023, 01:25 IST New York, United States of America (USA) A petrol station attendant prepares to refuel a car in Rome, Italy, January 4, 2012. (Reuters File Photo) Oil prices surge 2% on falling dollar, demand hopes, and supply cuts. Brent settles at highest since April, WTI at highest since May Oil prices jumped on Tuesday, settling up about 2%, boosted by a falling U.S. dollar, hopes for higher demand in the developing world and supply cuts by the world’s biggest oil exporters. Brent futures rose $1.71, or 2.2%, to settle at $79.40 a barrel. U.S. West Texas Intermediate (WTI) crude rose $1.84, or 2.5%, to settle at $74.83. Brent’s settlement was its highest since April 28 and WTI’s since May 1. Brent was in technically overbought territory for the second time in three days. “The break of the recent high could be viewed as a bullish step that could give (Brent) the momentum to break back above $80," said Craig Erlam, a senior market analyst at OA...

[ad_1] Last Updated: July 08, 2023, 01:33 IST New York, United States of America (USA) Gold remains stubbornly bid - trading higher even before the number. Today's report has given bulls some relief, at least short term, said Tai Wong, a New York-based independent metals trader. Gold prices rise as weaker US nonfarm payrolls cast doubt on interest rate hikes, boosting the appeal of the precious metal Gold prices rose on Friday and were on track for their first weekly gain in four as the dollar and bond yields fell after weaker U.S. nonfarm payrolls numbers cast doubts over the trajectory of interest rate hikes beyond July yet again. Spot gold was up 0.8% at $1,926.54 per ounce at 2:06 p.m. EDT (1806 GMT). Bullion was up 0.4% so far this week. U.S. gold futures settled 0.9% higher at $1,932.50. Labour department data showed nonfarm payrolls came in well below expectations last month, but the unemployment rate retreated from a seven-month high amid fairly strong wage gains. Benc...

[ad_1] KARACHI: The Pakistani currency witnessed a strong rebound as the International Monetary Fund (IMF)’s new loan programme defended its value, causing speculators to suffer losses. The rupee gained a significant 3.83%, or Rs10.55, reaching a four-month high at Rs275.44 against the US dollar in the inter-bank market on Tuesday. In the open market, the currency also experienced a jump of 3.57%, or Rs10, reaching Rs280 against the greenback. However, the closing price was significantly lower compared to Finance Minister Ishaq Dar’s claim of Rs270-272 against the dollar in the retail market just a day ago, despite the market largely being closed during the day. Furthermore, Pakistan’s global Eurobond continued its astonishing rally for the third consecutive working day, while gold prices further decreased following the signing of the staff-level agreement (SLA) between Pakistan and the IMF for a new nine-month loan programme worth $3 billion. Tuesday marked the first tradin...