PKR depreciates by 1.1 rupees over the week

June 18, 2021 (MLN): After posting a gain of around 22 paisa yesterday, the Pakistani rupee (PKR) depreciated by 15 paisa against US Dollar (USD) in today's interbank session as the currency closed the day's trade at PKR 156.89 per USD, against yesterday's closing of PKR 156.74 per USD.

The rupee endured a relatively dull trading session with very little intraday movement, trading in a range of 32 paisa per USD showing an intraday high bid of 156.98 and an intraday Low offer of 156.70.

“Yesterday, the rupee had closed 21.5 paisa higher after failing to break 157. Meanwhile, SBP’s Forex Reserves inched up by few millions of dollars i.e. $2.40 million for 3rd consecutive week,” Asad Rizvi, Former Treasury Head Chase Manhattan Bank said via his Twitter handle.

Drop in oil prices & other riskier assets amid sudden shift to hawkish from U.S Federal Reserve (FED) should support the rupee, he added.

During the week, the currency has lost 1.1 rupees against the greenback, as the previous week was concluded at PKR 155.74 per USD.

Within the Open Market, PKR was traded at 156.70/157.70 per USD.

According to the data compiled by Mettis Global, the home unit has gained 7.11 percent against the greenback fiscal year-to-date while the appreciation has been 1.88 percent in CY21 with a month-to-date position showing a decrease of 1.59 percent.

Alternatively, the currency gained 1.3 rupees against the Pound Sterling as the day's closing quote stood at PKR 217.79 per GBP, while the previous session closed at PKR 219.07 per GBP.

Similarly, PKR's value strengthened by 31 paisa against EUR which closed at PKR 186.99 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.2.2 trillion for 7 days at 7.05 percent.

The overnight repo rate towards close of the session was 7.10/7.20 percent, whereas the 1 week rate was 7.05/7.10 percent.

Copyright Mettis Link News

Posted on: 2021-06-18T16:38:00+05:00