PKR appreciates by 11 paisa over the week

February 04, 2021 (MLN): Pakistani rupee (PKR) appreciated by 20 paisa against US Dollar (USD) in today's interbank session as the currency closed the day's trade at PKR 159.99 per USD, against yesterday's closing of PKR 160.19 per USD.

This is the first time since January 4, 2021 that the dollar has been closed below 160.

The rupee endured a relatively dull trading session with very little intraday movement, trading in a range of 23 paisa per USD showing an intraday high bid of 160.14 and an intraday Low offer of 159.94.

In a tweet posted on his social media page, Asad Rizvi, the former Country Treasurer of Chase Manhattan Bank said, ‘Today Rupee gained strength due to favorable economic numbers. The fall is also caused due to the closure of the market on February 5, “KASHMIR SOLIDARITY DAY”. This means Banks in Pakistan will be closed on Friday, hence, expectations are that NOSTRO a/c will be LONG.’

During the week, the currency has gained 11 paisa against the greenback, as the previous week was concluded at PKR 160.10 per USD.

Within the Open Market, PKR was traded at 160.00/160.70 per USD.

Meanwhile, the currency gained 1.6 rupees against the Pound Sterling as the day's closing quote stood at PKR 217.37 per GBP, while the previous session closed at PKR 218.94 per GBP.

Similarly, PKR's value strengthened by 90 paisa against EUR which closed at PKR 191.95 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 mopped up Rs.45 billion for 4 days at 6.88 percent.

The overnight repo rate towards close of the session was 6.25/6.75 percent, whereas the 1 week rate was 6.95/7.05 percent.

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