PKR loses ground by 45 paisa against greenback

August 09, 2021 (MLN): Pakistani rupee (PKR) continued its downward slide against the US dollar as it depreciated by 45 paisa in today’s interbank session to close the trade at PKR 163.9 per USD, its lowest level since October 7, 2020.

In the previous session, the local unit had closed at PKR 163.45 per USD.

According to Asad Rizvi, the former Treasury Head, Chase Manhattan Bank, “Rupee is holding its ground around 164. It seems that dollar does not have the legs to move beyond.”

“Let’s see if it continues to hold or is likely to crack,” he added.

The rupee saw a volatility free session as very little movement was recorded trading in a range of 63 paisa per USD showing an intraday high bid of 164.10 and an intraday Low offer of 163.66.

Within the Open Market, PKR was traded at 163.50/164.50 per USD.

The home unit has depreciated by 3.88% and 2.48% in FY22 and CY21, respectively with the month-to-date (MTD) position showing a drop of 0.90%, as per data gathered by Mettis Global.

Alternatively, the currency gained 42 paisa against the Pound Sterling as the day's closing quote stood at PKR 227.15 per GBP, while the previous session closed at PKR 227.57 per GBP.

Similarly, PKR's value strengthened by 31 paisa against EUR which closed at PKR 192.73 at the interbank today.

On another note, within the money market, the overnight repo rate towards close of the session was 7.10/7.30 percent, whereas the 1 week rate was 7.10/7.15 percent.

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