PKR weakens against USD after Eid holidays

May 17, 2021 (MLN): After the resumption from the long Eid holidays, the Pakistani Rupee lost its ground in today’s interbank session as it settled lower by 32 paisa against the US Dollar (USD) to 152.6.

The currency had closed at PKR 152.28 per USD in the last session.

The rupee traded within a very narrow range of 54 paisa per USD showing an intraday high bid of 152.85 and an intraday Low offer of 152.50.

Within the Open Market, PKR was traded at 152.00/152.80 per USD.

'After a long weekend, it is expected that banks will be LONG (NOP) Net Open Position, as major markets were open & active. Initially, PKR could gain in early trade before easing as thin activity in M/E & slowdown of remittances inflow could halt gains for few days, said Asad Rizvi, a Former Treasury Head-Chase Manhattan Bank via his Twitter handle.

Commenting on robust remittance growth that reached USD2.7 billion in March 2021, Ali Khizar, an Economist said, ‘Upbeat remittance momentum continues as April numbers are likely to be the highest ever monthly flow - around $2.8 billion.’

Accordingly, the current account may remain close to balance, he tweeted.

Meanwhile, the currency lost 3.1 rupees to the Pound Sterling as the day's closing quote stood at PKR 215.18 per GBP, while the previous session closed at PKR 212.03 per GBP.

Similarly, PKR's value weakened by 1.4 rupees against EUR which closed at PKR 185.31 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.2585.4 billion for 4 days at 7.05 percent.

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

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