PKR depreciates by 5.1 rupees at close

May 16, 2019 (MLN):  In a surprising turn of events, the Pakistani Rupee (PKR) depreciated by 4.6 rupees against US Dollar in early trade at interbank today as banks quoted the currency at 146/147 per USD as compared to yesterday’s closing quote of PKR 141.39 per USD.

While this movement in exchange rate was duly expected due to conditions attached with the recently struck IMF deal, the timing of this devaluation took the markets by a storm which also impacted the equity markets along the way.

By day end, Pakistani rupee (PKR) had depreciated by 5.1 rupees against US Dollar (USD) at today's interbank session as the currency closed the day's trade at PKR 146.52 per USD, against previous session's closing of PKR 141.39 per USD.

Meanwhile, the currency lost 5.5 rupees against Pound Sterling as the day's closing quote stood at PKR 188.14 per GBP, while the previous session closed at PKR 182.61 per GBP.

Similarly, PKR's value weakened by 5.9 rupees against EUR which closed at PKR 164.44 at the interbank today.

Within the Open Market, PKR was traded at 145/148 per USD.

This round of depreciation further weighs down Pakistan's external debt burden by Rs.542.96 billion which in dollar terms accounts for a $105.84 billion. Pakistan now owes external avenues a total of Rs.15.51 trillion.

Conversely in the money market, the State Bank of Pakistan (SBP) conducted an Open Market Operation in which it mopped up Rs.89 billion for 1 day at 10.7 percent.

The overnight repo rate towards close of the session was 11.00/11.25 percent, whereas the 1 week rate was 10.75/11.00 percent.

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