PKR devalues by 5% against USD in FY20

June 30, 2020 (MLN): Pakistan Rupee closed FY20 at 168.0506 against USD compared to 160.0521 in FY19. Overall the Dollar appreciated by 5% in FY20 compared to 31.73% in FY19.

The fiscal year gone remained volatile as we had seen multiple issues weighed on PKR like foreign outflows and weaker global demand amid coronavirus pandemic.

Interestingly, the illustration suggests that the forex market for dollar was relatively stable in FY20 than FY19.

 PKR had stabilized at the start of FY20 and had gradually appreciated against dollar as it fell to 154.1697 on Feb 14, 2020.

This stable currency and high interest rates resulted in investment of over $3.5 billion in government securities. However, due to the financial impact of the coronavirus, PKR started depreciating since March 9, 2020 and closed at an all-time low of 168.1895 on June 29, 2020.

From its strongest in February, the domestic currency dropped by 8.34% to its weakest on June 29, 2020. Moreover, PKR was at its lowest on March 27 when the dollar was traded at 169.50 and quoted as high as 170.50.

Today, Pakistani rupee (PKR) appreciated by 14 paisa against US Dollar (USD) in interbank session as the currency closed the day's trade at PKR 168.05 per USD, against yesterday's closing of PKR 168.19 per USD.

The rupee traded within a very narrow range of 28 paisa per USD showing an intraday high bid of 168.20 and an intraday Low offer of 168.15.

Within the Open Market, PKR was traded at 167/168.50 per USD.

Meanwhile, the currency gained 99 paisa against the Pound Sterling as the day's closing quote stood at PKR 206.5 per GBP, while the previous session closed at PKR 207.5 per GBP.

Similarly, PKR's value strengthened by 62 paisa against EUR which closed at PKR 188.61 at the interbank today.

On another note, within the money market, the overnight repo rate towards close of the session was 6.60/6.80 percent, whereas the 1 week rate was 7.10/7.15 percent.

Copyright Mettis Link News

Posted on: 2020-06-30T16:37:00+05:00

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