March 19, 2021 (MLN): Pakistani rupee (PKR) depreciated by 52 paisa against US Dollar (USD) in today's interbank session as the currency closed the day's trade at PKR 155.97 per USD, against yesterday's closing of PKR 155.45 per USD.
Within the Open Market, PKR was traded at 155.80/156.50 per USD.
On Friday, the demand for dollars remained higher than the supply which dragged the rupee lower against the greenback. Commenting on the bounce-back of USD in late trading hours on Thursday, Asad Rizvi, Former Treasury Head-Chase Manhattan Bank said on his Twitter account, ‘Yesterday late USD surge was witnessed. Normally such moves occur on Short Covering/CB buying of $. Oil is a big BIG-TICKET item, but yesterday there was no OIL-related payment. Large Local & a Foreign Banks were buyers.’
According to some analysts, the central bank was likely buying dollars to prop up its reserves, however, there was no independent confirmation.
The rupee traded within a very narrow range of 75 paisa per USD showing an intraday high bid of 156.10 and an intraday Low offer of 155.50.
During the week, the currency has gained 1.2 rupees against the greenback, as the previous week was concluded at PKR 157.14 per USD.
Furthermore, the local unit has so far strengthened by Rs 12.07 or 7.74% against the greenback during FY21 while the appreciation has been Rs 3.86 or 2.48% in CY21, with the rupee gaining 1.36% MTD.
Meanwhile, the currency lost 38 paisa to the Pound Sterling as the day's closing quote stood at PKR 217.48 per GBP, while the previous session closed at PKR 217.1 per GBP.
Similarly, PKR's value weakened by 16 paisa against EUR which closed at PKR 185.89 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.1,220 billion for 7 days at 7.04 percent.
The overnight repo rate towards close of the session was 7.05/7.10 percent, whereas the 1 week rate was 7.03/7.07 percent.
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