PKR on losing spree, down by 72 paisa against greenback

August 24, 2022 (MLN): In the backdrop of an increase in dollar demand in the interbank market, the Pakistani rupee (PKR) depreciated by 72 paisa against the US dollar in today's interbank session as the currency settled the trade at PKR 218.38 compared to yesterday's closing of 217.66 per USD.

During the session, the rupee traded in a range of 1.5 rupees per USD showing an intraday high bid of 219 and an intraday low offer of 217.80 while in the open market, PKR was traded at 218/220 per USD.

Speaking to Mettis Global, Malik Boston, President of Forex Association of Pakistan said that the local unit is under pressure on the back of the newly enforced law by UAE for Pakistani travelers to have 5,000 dirhams along with a valid work visa and a return ticket.

This development came after when UAE authorities deported 80 Pakistanis for having fake return tickets.

However, the pressure would ease off as soon as friendly countries start investing in Pakistan. With this positive environment, the US dollar may come around190 rupees.

Meanwhile, Wajid Rizvi, Head of Research and Economy at Intermarket Securities told Mettis Global that the strength of the dollar is being appreciated by every other currency not only against PKR.

He suggested that productive measures need to be taken with regard to oil imports to further ease the current account deficit.  

“Europe has a fear of depleting energy reserves for the winter and the global energy crisis would hit Pakistan too. However, the government is not considering this upcoming crunch”, he added.

In FYTD, PKR lost 13.53 rupees or 6.20%, while it plummeted by 41.86 rupees or 19.17% against the USD in CYTD, as per data compiled by Mettis Global.

During the last 52 weeks, PKR lost 24.16% against the greenback while reaching its lowest at 239.94 on July 28, 2022, and the highest of 165.62 on August 27, 2021.

Furthermore, the local unit has weakened by 10.86% against EUR when it was highest on March 07, 22 while the rupee weakened by 12.15% against GBP since its high on August 27, 2021.

In FYTD, the rupee weakened against AED, SAR, JPY, CHF, CNY, GBP, and EUR by 6.20%, 6.09%, 5.95%, 5.48%, 3.78%, 3.77%, and 1.63%, respectively. 

The currency lost 2.1 rupees to the Pound Sterling as the day's closing quote stood at PKR 258.22 per GBP, while the previous session closed at PKR 256.11 per GBP.

Similarly, PKR's value weakened by 1.1 rupees against EUR which closed at PKR 217.35 at the interbank today.

On another note, within the money market, the overnight repo rate towards the close of the session was 14.75%/15.15%, whereas the 1-week rate was 15.15%/15.25%.

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