PKR snaps losing streak, gains 12 paisa against USD

October 21, 2022 (MLN): After witnessing a rough spell of depreciation, the Pakistani rupee (PKR) has appreciated by 12 paisa against the US dollar in today's interbank session as the currency settled the trade at PKR 220.84 per USD, compared to yesterday's closing of PKR 220.95 per USD.

During the session, the rupee traded in a narrow range of 20 paisa per USD showing an intraday high and low bid of 220 while in the open market, PKR was traded at 223/225 per USD.

The positivity stemmed from Finance Minister Ishaq Dar’s recent statement wherein he said that he did not get any opposition from Washington over oil imports from Russia. He was also confident that Pakistan would meet all international commitments without default.

Meanwhile, the approval of $1.5 billion from the Asian Development Bank (ADB) and the upcoming FATF decision where Pakistan is likely to take an exit from the grey list also lessen the chaos in the interbank market.

Speaking to Mettis Global, Malik Bostan, President of Forex Association Pakistan told that PKR will strengthen against the US dollar in the medium term as Pakistan is going to be removed from FATF's grey list which will give the required reputational boost to the country. Resultantly, the confidence of international money lenders and friendly countries will increase in Pakistan. 

During the week, the currency lost 2.4 rupees against the greenback, as the previous week was concluded at PKR 218.43 per USD.

In FYTD, PKR lost 15.99 rupees or 7.24%, while it plummeted by 44.32 rupees or 20% against the USD in CYTD, as per data compiled by Mettis Global.

Meanwhile, the currency gained 88 paisa against the Pound Sterling as the day's closing quote stood at PKR 247.05 per GBP, while the previous session closed at PKR 247.93 per GBP.

Similarly, PKR's value remained unchanged against EUR which closed at PKR 216.24 at the interbank today.

The overnight repo rate towards the close of the session was 14.90/15%, whereas the 1-week rate was 15.15/15.25%.

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