March 03, 2023 (MLN): After enduring a volatile session, the Pakistani rupee (PKR) has appreciated by 6.6 rupees against the US dollar in today's interbank session as the currency settled the day's trade at PKR 278.46 per USD, against yesterday's closing of PKR 285.09 per USD.
Throughout today’s session, the local unit traded in a band of 12 rupees, showing an intraday high bid of 285 and low offer of 275 while in the open market, PKR was traded at 278/282 per USD.
This significant recovery in today's session is primarily due to the dissipated situation of chaos and uncertainty as the central bank has increased the policy rate hike by 300 bps to 20% to comply with IMF's conditions.
Meanwhile, the authorities also took most of the other prior actions, such as increasing fuel and energy tariffs, withdrawing subsidies in export and power sectors, and generating more revenues through new taxation in a supplementary budget.
Furthermore, the settlement of most of the LCs has taken place which took off some pressure from the local unit.
During the week, the currency lost 18.5 rupees against the greenback, as the previous week was concluded at PKR 259.99 per USD.
It is important to note that amidst the prolonged delay in the IMF tranche, political upheaval, rising economic uncertainty, and default noise, PKR plummeted by 19 rupees against the US dollar in yesterday's interbank session as the currency settled the trade at PKR 285.09 per USD.
In FYTD, PKR lost 73.61 rupees or 26.44%, while it plummeted by 52.03 rupees or 18.69% against the USD in CYTD. On the other hand, within the last seven sessions, the local unit moved down by 6.63%, as per data compiled by Mettis Global.
Meanwhile, the currency gained 7.5 rupees against the Pound Sterling as the day's closing quote stood at PKR 333.72 per GBP, while the previous session closed at PKR 341.27 per GBP.
Similarly, PKR's value strengthened by 7.7 rupees against EUR which closed at PKR 295.38 at the interbank today.
On another note, within the money market, The State Bank of Pakistan (SBP) conducted an Open Market Operation (OMO), and Shariah-compliant Mudarabah OMO today, in which it cumulatively injected a total of Rs2.36 trillion into the market, from which Rs2.25tn injected into the market of which Rs506 billion were injected at 20.10% for 7-day and Rs1.74tr were injected at 20.09% rate of return for 77-day.
The overnight repo rate towards the close of the session was 19.75/20.25%, whereas the 1-week rate was 17.85/17.95%.
Copyright Mettis Link News
Posted on: 2023-03-03T17:40:44+05:00
