Dollar closes all-time high of PKR 169.6

September 27, 2021 (MLN): While maintaining its dominancy in the interbank market against the Pakistani Rupee (PKR), the US dollar closed the trading session on Monday at an all-time high of 169.6.

The highest recorded close of greenback was169.116 against PKR, set on September 15, 2021.

The rupee endured a volatile session and moved within a range of 65 paisa per USD, showing an intraday high bid of 169.75 and an intraday Low offer of 169.10.

Expressing his view about the steps taken by the government to ease off the pressure from PKR, Asad Rizvi, the Former Treasury Head at Chase Manhattan said, “Tax break announced on Afghani imports may help for cash or barter trade based on policy.”

“But along with rising oil prices, both will add pressure on BOP,” he added.  

Hence, I still do not see respite for PKR as the payment size of oil tankers have substantially increased, he said.

Within the Open Market, PKR was traded at 169.50/171.80 per USD.

According to the data compiled by Mettis Global, the local unit has depreciated by 7.11% or PKR 12.05 in the fiscal year-to-date against the USD. Similarly, the rupee has weakened by 5.76% or PKR 9.76 in CY21, with the month-to-date (MTD) position showing a decline of 1.89%.

Meanwhile, the currency lost 56 paisa to the Pound Sterling as the day's closing quote stood at PKR 232.35 per GBP, while the previous session closed at PKR 231.79 per GBP.

On the other hand, PKR's value strengthened by 5 paisa against EUR which closed at PKR 198.38 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.78.5 billion for 4 days at 7.4 percent.

The overnight repo rate towards the close of the session was 7.30/7.40 percent, whereas the 1-week rate was 7.35/7.45 percent.

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