PKR slides by 77 paisa over the week

July 16, 2021 (MLN): Continuing its losing streak for the second consecutive day, the Pakistani rupee (PKR) on Friday closed the trade at 159.94 per USD, its lowest close since February 4, 2021 and 64 paisa lower than the last session's closing of PKR 159.3 per USD.

The rupee saw a volatility free session as very little movement was recorded trading in a range of 65 paisa per USD showing an intraday high bid of 160.00 and an intraday Low offer of 159.40.

During the week, the currency has lost 77 paisa against the greenback despite witnessing positive developments such as record high of remittances and increased volume of foreign exchange reserves. According to Asad Rizvi, the former Country Treasurer of Chase Manhattan Bank, the insufficient volume of exports and higher import bill of luxury items continued to pressurize the home unit.

Last week, the local unit had closed at PKR 159.17 per USD.

Within the Open Market, PKR was traded at 159.50/160.30 per USD.

The rupee has depreciated by 1.5% or Rs2.4 in the fiscal year-to-date against USD. Similarly, the home unit has weakened by 0.06% or 0.10 paisa in CY21 with the month-to-date (MTD) position showing a decline of 1.50%, as per the data compiled by Mettis Global.

Meanwhile, the currency lost 94 paisa to the Pound Sterling as the day's closing quote stood at PKR 221.51 per GBP, while the previous session closed at PKR 220.57 per GBP.

Similarly, PKR's value weakened by 9 paisa against EUR which closed at PKR 188.82 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.1.54 trillion for 10 days at 7.08 percent.

The overnight repo rate towards close of the session was 7.15/7.25 percent, whereas the 1 week rate was 7.05/7.15 percent.

Copyright Mettis Link News