PKR depreciates further, loses 21 paisa against USD

October 26, 2023 (MLN): The Pakistani rupee (PKR) depreciated by over 21 paisa against the US dollar in Thursday's interbank session and settled the trade at PKR 280.09, compared to the previous day's closing of PKR 279.88 per USD.

The local unit saw an intraday high (bid) of 280.2 and a low (ask) of 280.15.

In the open market, the local unit remain unchanged as the exchange companies quoted the dollar at 279 for buying and 282 for selling.

It is important to mention that this marks the fourth straight session that the PKR has lost against the greenback.

The performance of the best-performing currency the Pakistani rupee (PKR) will be short-lived in the backdrop of financing risks and the upcoming elections, according to Goldman Sachs's analyst. 

"The recent appreciation of the Pakistani rupee will likely be short-lived, given soaring interest costs and only short-term arrangements with the IMF and bilateral financing to support the external balance," analysts led by Kamakshya Trivedi wrote in a Wednesday report. 

"The market will continue to require a premium for Pakistan's rupee ahead of elections," he added. 

In comparison to major currencies, PKR gained 1.04 rupees against the Euro, closing at 295.53 compared to the previous value of 296.56.

The British Pound became cheaper by 1.26 rupees, closing at 338.73 compared to 339.99 from a day ago.

The Swiss franc saw losses of 1.23 rupees, closing at 311.84 compared to 313.07 from the previous session.

Against the Japanese Yen, PKR gained 0.56 paisa, closing at 1.862 versus 1.867 a day ago.

The Chinese Yuan gained 1.07 paisa, closing at 38.27 against 38.2593 from the previous session.

The Saudi Riyal closed at 74.66 with a gain of 4.82 paisa from its value of 74.61 a day ago.

The U.A.E Dirham increased in value by 5.73 paisa from 76.2 a day ago to 76.257.

During the current financial year, PKR has appreciated against the Dollar by 5.9 rupees or 2.11%. While the current calendar year has seen PKR depreciate by 53.66 rupees or 19.16%.

In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates inched down by 2 bps to 21.75% and 22%.

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