PKR records third consecutive gain against USD

April 27, 2022 (MLN): Extending its gaining streak, the Pakistani rupee (PKR) has further appreciated by 17 paisa against the US dollar in today's interbank session as the currency closed the day's trade at PKR 185.45 compared to yesterday's closing of PKR 185.62 per USD.

The rupee endured a highly volatile trading session with quotes being recorded in a range of 55 paisa per USD showing an intraday high bid of 185.85 and an intraday low offer of 185.40.

Though there is stress on the economy, some stability is visible, Asad Rizvi, the former Treasury Head at Chase Manhattan Bank noted.

Despite better exports, the current account deficit has surged to alarming levels and in order to address this challenge, there is a need to look at the agriculture sector and curtail needless imports, he added.

From July’21 to date, the local unit has lost Rs27.91 against the USD. Similarly, the rupee fell by Rs8.94 in CYTD, with the month-to-date (MTD) position showing a drop of 1.07%, as per data compiled by Mettis Global.

In addition, the performance of PKR remained satisfactory against major during the day as it strengthened by 1.42%, 0.80%, 0.67, and 0.14% against GBP, EUR, CHF, and CNY respectively.

Within the open market, PKR was traded at 185/186.50 per USD.

Meanwhile, the currency gained 3.3 rupees against the Pound Sterling as the day's closing quote stood at PKR 232.89 per GBP, while the previous session closed at PKR 236.19 per GBP.

Similarly, PKR's value strengthened by 1.6 rupees against EUR which closed at PKR 196.79 at the interbank today.

On another note, within the money market, the six-month KIBOR reached 14.10% today, marking the highest rate since February 19, 2009 (14.18%).

While the overnight repo rate towards the close of the session was 11.30/11.50 percent, whereas the 1-week rate was 11.95/12.05 percent.

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