PKR went through another dreary week due to timid participation from investors. Political uncertainty in recent months has pushed investors to the sidelines.
The State Bank of Pakistan (SBP) is vigilantly monitoring the currency position, and continues to provide exchange for routine business effectively preventing Rupee from falling. Support to Rupee came from weak international market for green backs.
The Euro continues to strengthen against USD in the international markets on support of economic recovery across Europe. The ECB Head Mario Draghi the other day commented on European Recovery which some political analysts has been prompted after Macron’s win in French Elections and suggested the only way forward is growth. Euro hit a 2 and a half year peak against Dollar last week as tensions mount between US and the Korean Hermit State enticing investors to look for safe investment havens.
In the week’s opening session, the rupee traded flat at Rs105.39 and Rs105.40, unchanged over the last closing level. PKR assumed a declining trend last week against Euro as the European currency gained Rs2.50 on a week-on-week basis.
PKR entered the week in a minus, witnessing a 75 paisa (pa) loss on the buying side and 50 pa on the selling side, Rs124.75 and Rs126.00, respectively. The downward trajectory of PKR against Euro persisted for second straight day as it fell to Rs125.30 and Rs126.60 in the second trading session. In third session, the rupee lost 50 pa on the buying side & 70 pa on the selling side, a total loss of Rs1.80 in three days. In the final trading session, PKR lost 70 pa closing the week at Rs126.50 and Rs128.00 at a two-and-a-half-month low.