PKR depreciates by 1.1 rupees over the week

May 28, 2021 (MLN): Breaking its losing streak, the Pakistani Rupee (PKR) on Friday appreciated against the US Dollar (USD), gaining 40 paisa in an interbank session to close the day's trade at PKR 154.43 per USD on the back of an increase in forex reserves.

On Thursday, the home unit has closed at PKR 154.84 per USD.

The rupee saw a volatility-free session as a very little movement was recorded trading in a range of 40 paisa per USD, showing an intraday high bid of 154.80 and an intraday Low offer of 154.45.

Data furnished by the State Bank of Pakistan (SBP) in its weekly statistical supplement, showed that Pakistan's Forex Reserves increased by USD 105.60 Million or 0.46% to stand at USD 23.02 billion. SBP’s reserves also increased by USD 87.50 million due to official GoP inflows.

The improvement in foreign reserves helped the rupee sentiments.

This morning, Asad Rizvi, Former Treasury Head-Chase Manhattan Bank said via Twitter, “Forex weekly position is updated by SBP after one week delay. Remittances inflows are likely to improve, which should reduce Dollar/Rupee volatility.”

During the week, the currency has lost 1.1 rupees against the greenback, as the previous week was concluded at PKR 153.36 per USD.

Within the Open Market, PKR was traded at 154.50/155.50 per USD.

According to the data compiled by Mettis Global, in FY21, the home unit has strengthened by PKR 13.61 or 8.82% against the greenback so far while it appreciated by around PKR 5.40 or 3.50% in CY21 with MTD (month to date) position showing a decrease of 0.64%.

Alternatively, the currency lost 51 paisa to the Pound Sterling as the day's closing quote stood at PKR 219.24 per GBP, while the previous session closed at PKR 218.74 per GBP.

On the other hand, PKR's value strengthened by 54 paisa against EUR which closed at PKR 188.32 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.2410.3 billion for 7 days at 7.05 percent.

The overnight repo rate towards the close of the session was 7.10/7.15 percent, whereas the 1-week rate was 7.05/7.10 percent.

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Posted on: 2021-05-28T16:25:00+05:00