November 16, 2021 (MLN): Pakistani rupee (PKR) maintained its gaining momentum in the second consecutive today in the interbank market as the currency closed the trade at 174.89 against US dollar, appreciating by 41 paisa.
Yesterday, the local unit had settled the trade at 175.29 per USD.
The local unit endured a volatile trading session with quotes being recorded in a range of 1.55 rupees per USD showing an intraday high bid of 175.60 and an intraday Low offer of 173.80.
The domestic currency joined the upward trail yesterday on the back of the positive statement made on Sunday by the Adviser to Prime Minister on Finance and Revenue, Shaukat Tarin where he mentioned that the prevailing uncertainty pertaining to IMF loan facility is going to be over soon.
He also pointed out “speculators will soon bear the losses.”
While speaking to Mettis Global, Asad Rizvi, the Former Treasury Head at Chase Manhattan criticized the statement as it would create serious problems for the country on the front Financial Action Task Force (FATF).
Within the Open Market, PKR was traded at 175.50/177.00 per USD.
As per the data compiled by Mettis Global, the local unit has depreciated by 9.92% or PKR 17.34 in the fiscal year-to-date against the USD. Similarly, the rupee has weakened by 8.61% or PKR 15.05 in CY21, with the month-to-date (MTD) position showing a decline of 1.85%.
Alternatively, the currency lost 20 paisa to the Pound Sterling as the day's closing quote stood at PKR 235.42 per GBP, while the previous session closed at PKR 235.23 per GBP.
On the other hand, PKR's value strengthened by 1.9 rupees against EUR which closed at PKR 198.91 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.129.2 billion for 3 days at 7.55 percent.
The overnight repo rate towards the close of the session was 7.55/7.70 percent, whereas the 1-week rate was 7.45/7.50 percent.
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