PKR slides by 77 paisa against USD in a week

November 25, 2022 (MLN): On the back of bleak macros and rising dollar demand, the Pakistani rupee (PKR) has weakened by 77 paisa against the US dollar in a week as the currency settled the week at PKR 223.94 per USD, compared to the previous week’s closing of PKR 223.17 per USD.

In today’s session, the local unit remained stable in the interbank market, marking an intraday high bid of 224 and low offer of 223.75 while in the open market, PKR was traded at 228.75/231per USD.

On Monday, PKR lost 49 paisa against the US dollar in the interbank as importers had outstanding Letter of Credit (LCs) which boosted demand for the dollar. In addition to it, delays in the IMF’s ninth review and the 5-year credit default swap (CDS) hitting a historic high have also pushed PKR towards a bottomless pit.

However, on Tuesday, PKR witnessed no change as no significant payment was made by the central bank while in the next session, the local currency shed its value mainly on the speculations on Pakistan-IMF talks over the release of the next tranche is subject to fresh conditions and the rising spread in the open market and interbank.

In FYTD, PKR lost 19.09 rupees or 8.53%, while it plummeted by 47.4 rupees or 21.18% against the USD in CYTD, as per data compiled by Mettis Global.

Meanwhile, the currency lost 61 paisa to the Pound Sterling as the day's closing quote stood at PKR 271.29 per GBP, while the previous session closed at PKR 270.68 per GBP.

On the other hand, PKR's value strengthened by 14 paisa against EUR which closed at PKR 233.3 at the interbank today.

On another note, within the money market, the overnight repo rate towards the close of the session was 15%/15.25%, whereas the 1-week rate was 14.85%/14.95%.

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