PKR depreciates by 1.5 rupees against greenback

November 18, 2020 (MLN): Pakistani rupee (PKR) depreciated by 1.5 rupees against US Dollar (USD) in today's interbank session as the currency closed the day's trade at PKR 159.83 per USD, against yesterday's closing of PKR 158.31 per USD.

“Strained relationships with the Gulf States, including some statements from Riyadh, have dampened expectations about the remittances”, Exchange Companies Association of Pakistan (ECAP) former secretary-general Zafar Paracha said. He also mentioned the currency speculation in the interbank is also the reason for the depreciation of PKR against the greenback.

Malik Bostan, President Forex Association of Pakistan hinted at some impending payments along with increased demand for US dollars from importers which reportedly opened several Letter of Credit (LCs) today.

A trader at a bank confirmed that importers were waiting for the dollar to reach an attractive rate for them to start booking LCs and the sudden demand caused the dollar to rally.

The currency dealers do not expect the dollar to hold on to today's gains over the short term period.

There was also talk in the market that the rupee depreciated because of the Finance Adviser's statement regarding the resumption of talks with the IMF.

1.68 rupees per USD showing an intraday high bid of 160.00 and an intraday Low offer of 158.37.

Within the Open Market, PKR was traded at 159/160.50 per USD.

Meanwhile, the currency lost 3.2 rupees to the Pound Sterling as the day's closing quote stood at PKR 212.33 per GBP, while the previous session closed at PKR 209.18 per GBP.

Similarly, PKR's value weakened by 2.1 rupees against EUR which closed at PKR 189.91 at the interbank today.

On another note, within the money market, the overnight repo rate towards the close of the session was 7.30/7.45 percent, whereas the 1-week rate was 7.05/7.10 percent.

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