PKR appreciates by 61 paisa over the week

April 09, 2021 (MLN): Pakistani rupee (PKR) has maintained an uptrend as it appreciated by 7 paisa against US Dollar (USD) in today's interbank session as the currency closed the day's trade at PKR 152.94 per USD, against yesterday's closing of PKR 153.02 per USD on the back of strong forex reserves data.

Yesterday, the State Bank of Pakistan (SBP) announced via his Twitter handle that it received the proceeds of the government’s US$2.5 billion Euro Bond issuance in its account. As a result, SBP’s FX reserves closed above US$16 billion today, the highest level since July 2017.

The rupee traded within a very narrow range of 25 paisa per USD showing an intraday high bid of 152.95 and an intraday Low offer of 152.80.

Within the Open Market, PKR was traded at 152.80/153.50 per USD.

Taking to his Twitter handle, Asad Rizvi, Former Treasury Head-Chase Manhattan Bank in his opening note said, ‘By adding $ 2.5 billion Eurobond inflow after receiving IMF $ 500 million TRANCHE last week, SBP FX RESERVES surged beyond $ 16 billion. Total Liquid Reserves is above $ 23 billion. And with RAMZAN INFLOW in the pipeline, Rupee will maintain its stronger tone.’

During the week, the currency has gained 61 paisa against the greenback, as the previous week was concluded at PKR 153.55 per USD.

So far, PKR has logged by Rs 15.11 or 9.88% gain against the greenback in FY21 while appreciation has been Rs 6.89 or 4.51% in CY21. MTD (month to date) position showed a decrease of 0.12%, as per data compiled by Mettis Global.

Meanwhile, the currency gained 60 paisa against the Pound Sterling as the day's closing quote stood at PKR 209.65 per GBP, while the previous session closed at PKR 210.25 per GBP.

On the other hand, PKR's value weakened by 24 paisa against EUR which closed at PKR 181.78 at the interbank today.

On another note, within the money market, the State Bank of Pakistan (SBP) conducted an Open Market Operation in which it injected Rs.1650.1 billion for 7 days at 7.04 percent.

The overnight repo rate towards the close of the session was 6.25/6.50 percent, whereas the 1-week rate was 6.65/6.85 percent.

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