November 20, 2023 (MLN): The Pakistani rupee (PKR) started the week on a strong note, appreciating by around 53 paisa against the US dollar in Monday's interbank session to settle at PKR 285.97, as compared to the previous day's closing of PKR 286.5 per USD.
The local unit saw an intraday high (bid) of 286.79 and a low (ask) of 286.25.
In the open market, the local unit gained 50 paisa as exchange companies quoted the dollar at 287.5 for buying and 288.5 for selling, compared to the previous closing of 288 for buying and 289 for selling.
This upswing follows the staff-level agreement successfully being reached between the International Monetary Fund (IMF) and Pakistani authorities on the first review under Pakistan's Stand-By Arrangement (SBA).
Pending approval by the IMF's Executive Board, the agreement will grant Pakistan access to SDR 528 million, which is around $700m.
This will bring the total disbursements under the program to almost $1.9 billion.
In the statement issued by the IMF yesterday, the Fund said that strengthening macroeconomic sustainability and laying the conditions for balanced growth are key priorities under the SBA.
The authorities’ policy priorities include returning to a market-determined exchange rate and rebuilding FX reserves.
While inflows following increased regulatory and law enforcement helped normalize import and FX payments and rebuild reserves, the authorities recognize that the rupee must remain market-determined to alleviate external pressures and rebuild reserves sustainably.
To support this, they plan to strengthen the transparency and efficiency of the FX market and refrain from administrative actions to influence the rupee.
It is worth mentioning that the local Rupee snapped its 17-day-long losing streak against the mighty dollar last week and appreciated by 53 paisa.
The pressure resulting from the gap between the demand and supply of dollars prevailed over the market for days and the PKR remained under pressure for four consecutive weeks.
However, as per Bloomberg's latest report, the local unit's outlook will improve following the International Monetary Fund’s preliminary approval for the release of the next loan tranche under the current $3bn loan program.
In comparison to major currencies, PKR lost 2.12 rupees against the Euro, closing at 312.36 compared to the previous value of 310.25.
The British Pound became expensive by 2.22 rupees, closing at 357.02 compared to 354.8 from a day ago.
Swiss franc saw gains of 1.14 rupees, closing at 323.33 compared to 322.2 from the previous session.
Against the Japanese Yen, PKR lost 1.65 paisa, closing at 1.921 versus 1.905 a day ago.
The Chinese Yuan gained 29.7 paisa, closing at 39.8292 against 39.5322 from the previous session.
The Saudi Riyal closed at 76.25 with a loss of 14.43 paisa from its value of 76.39 a day ago.
The U.A.E Dirham decreased in value by 14.33 paisa from 78.003 a day ago to 77.859.
During the current financial year, PKR has depreciated against the Dollar by 0.02 rupees or 0.01%. While the current calendar year has seen PKR depreciate by 59.54 rupees or 20.82%.
In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates inched up by 3 bps to 20.99% and 21.24%.
Performance Summary
| Currency | Nov 20, 2023 | Nov 17, 2023 | Change | 1 Month | FYTD | CYTD | 1 Day | 7 Day | 1 Month | MTD | FYTD | CYTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| USD | 285.9699 | 286.496 | 0.5261 | -7.1733 | 0.0206 | -59.5390 | 0.18% | 0.55% | -2.51% | -1.57% | 0.01% | -20.82% |
| EUR | 312.3649 | 310.2465 | -2.1184 | -17.1193 | 0.5659 | -71.0574 | -0.68% | -1.58% | -5.48% | -4.33% | 0.18% | -22.75% |
| GBP | 357.0191 | 354.7966 | -2.2225 | -19.1316 | 7.1182 | -83.9434 | -0.62% | -1.40% | -5.36% | -4.24% | 1.99% | -23.51% |
| CHF | 323.3308 | 322.1953 | -1.1355 | -10.3575 | -3.5740 | -78.3022 | -0.35% | -1.43% | -3.20% | -3.54% | -1.11% | -24.22% |
| JPY | 1.9211 | 1.9046 | -0.0165 | -0.0618 | 0.0712 | -0.2075 | -0.86% | -1.37% | -3.22% | -2.56% | 3.71% | -10.80% |
| SAR | 76.2485 | 76.3928 | 0.1443 | -1.9265 | 0.0055 | -16.0435 | 0.19% | 0.55% | -2.53% | -1.60% | 0.01% | -21.04% |
| AED | 77.8594 | 78.0027 | 0.1433 | -1.9571 | 0.0024 | -16.2070 | 0.18% | 0.55% | -2.51% | -1.57% | 0.00% | -20.82% |
| CNY | 39.8292 | 39.5322 | -0.2970 | -1.7243 | -0.1595 | -7.2635 | -0.75% | -0.97% | -4.33% | -3.43% | -0.40% | -18.24% |
52 Week Performance
| Currency | High | Low | Trading Band | % Since High | % Since Low | High Date | Low Date | Days Since High | Days Since Low |
|---|---|---|---|---|---|---|---|---|---|
| USD | 223.416 | 307.1 | 83.6839 | -21.87% | 7.39% | 22-Nov-22 | 05-Sep-23 | 363 | 76 |
| EUR | 229.314 | 332.701 | 103.3866 | -26.59% | 6.51% | 22-Nov-22 | 31-Aug-23 | 363 | 81 |
| GBP | 264.494 | 387.972 | 123.4787 | -25.92% | 8.67% | 21-Nov-22 | 31-Aug-23 | 364 | 81 |
| CHF | 233.479 | 347.163 | 113.6843 | -27.79% | 7.37% | 22-Nov-22 | 31-Aug-23 | 363 | 81 |
| JPY | 1.5754 | 2.2178 | 0.6424 | -17.99% | 15.44% | 22-Nov-22 | 11-May-23 | 363 | 193 |
| SAR | 59.4388 | 81.8703 | 22.4315 | -22.05% | 7.37% | 22-Nov-22 | 05-Sep-23 | 363 | 76 |
| AED | 60.8257 | 83.6089 | 22.7832 | -21.88% | 7.38% | 22-Nov-22 | 05-Sep-23 | 363 | 76 |
| CNY | 31.1028 | 43.0908 | 11.9880 | -21.91% | 8.19% | 28-Nov-22 | 11-May-23 | 357 | 193 |
Copyright Mettis Link News
Posted on: 2023-11-20T15:15:31+05:00
