PKR snaps 2-day losing streak

June 09, 2021 (MLN): Snapping its two-day losing streak, the Pakistani rupee (PKR) on Wednesday settled higher by 9 paisa against US Dollar (USD) in an interbank session as the currency closed the day's trade at PKR 155.69 per USD, against yesterday's closing of PKR 155.78 per USD.

The rupee saw a volatility-free session as a very little movement was recorded trading in a range of 44 paisa per USD, showing an intraday high bid of 155.95 and an intraday Low offer of 155.55.

Within the Open Market, PKR was traded at 155.80/156.30 per USD.

“The currency is under pressure for the past few days. There are some traditional payments pressures due in June," said Ali Khizar, an Economist via his Twitter handle.

He noted that the world commodities are moving high, and economic activities are picking up, therefore, PKR/USD is likely to remain in the band of 2-3 percent of 155.

According to the data gathered by Mettis Global, in FY21, the home unit has so far appreciated by PKR 12.36 or 7.94% against the greenback while it gained by around PKR 4.14 or 2.66% in CY21 with MTD (month to date) position showing a decrease of 0.83%.

Alternatively, the currency lost 44 paisa to the Pound Sterling as the day's closing quote stood at PKR 220.8 per GBP, while the previous session closed at PKR 220.36 per GBP.

Similarly, PKR's value weakened by 5 paisa against EUR which closed at PKR 189.76 at the interbank today.

On another note, within the money market, the overnight repo rate towards the close of the session was 6.05/6.25 percent, whereas the 1-week rate was 6.75/6.90 percent.

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