PKR appreciates by 1.6 rupee in a week

December 31, 2021 (MLN): The Pakistani rupee (PKR) continued to recover on the second consecutive day against the US dollar securing its position by one rupee on the last day of CY21 in interbank session as the currency closed the day's trade at 176.51 per USD.

The domestic unit traded in a range of 1 rupee per USD, witnessing an intraday high bid of 177.40 and an intraday low offer of 176.40.

It is pertinent to mention that the news of SBP’s autonomy bill has created a favorable vibe in the interbank market since PKR started to hold its lost position against the dollar yesterday as PKR had settled at 177.51 per USD after gaining 72 paisa.

Meanwhile, the end of the year period is also playing its due role to subside the demand for dollars. As per currency experts, the government had already paid the import bills and currently working tirelessly to submit the 6^th review to the IMF Board.

During the week, the currency has gained 1.6 rupees against the greenback, as the previous week was concluded at PKR 178.13 per USD.

Though, the currency started its long-lost gaining momentum but not to forget that it may take time to reach back from where it has started as the domestic unit has weakened by PKR16.67 or 9.45% in CY21. While, in FYTD, the rupee shed its value by PKR18.96 or 10.75%, and during the outgoing month, it has registered a loss of 0.45%.

Within the open market, PKR was traded at 180/181 per USD.

Meanwhile, the currency gained 75 paisa against the Pound Sterling as the day's closing quote stood at PKR 238.28 per GBP, while the previous session closed at PKR 239.03 per GBP.

Similarly, PKR's value strengthened by 1.2 rupees against EUR which closed at PKR 199.64 at the interbank today.

Within the money market, in an Open Market Operations (OMO) the State Bank of Pakistan (SBP) injected Rs330 billion and Rs274 billion into the market for 7 days and 63 days at 9.87% and 9.88%, respectively, bringing total injections to Rs604 billion.

On another note, the overnight repo rate towards the close of the session was 10.10/10.40 percent, whereas the 1-week rate was 9.95/10.05 percent.

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