May 09, 2023 (MLN): Concerns over the delay in the IMF tranche and rising political temperature have forced the Pakistani rupee (PKR) to lose 99 paisa against the US dollar in today's interbank session as the currency settled at PKR 284.84 per USD compared to yesterday's closing of PKR 283.85 per USD.
Throughout today’s session, the local unit traded in a band of 1.05 rupees, showing an intraday high bid of 284.85 and a low offer of 283.85 while in the open market, PKR was traded at 288/289 per USD.
The local unit remained choppy today on the concerns of a possible default in the absence of IMF bailout.
Moody’s Investor Service has warned that Pakistan could default without an International Monetary Fund bailout as its financing options beyond June are uncertain.
“We consider that Pakistan will meet its external payments for the remainder of this fiscal year ending in June,” according to Grace Lim, a sovereign analyst at Moody's in Singapore.
At the same time, the Finance Division informed that the government has arranged the rollover/repayment of debt worth $3.7 billion which was supposed to be repaid by the end of June 2023.
"The media has carried the news that 3.7 billion dollars have to be repaid by GoP by the end of June 2023, which is correct. However, this should not be any cause for concern as arrangements have been made for the rollover/repayment of this debt," the statement issued by Finance Division read.
On the political front, rangers have arrested Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan in the Al-Qadir Trust case from outside Islamabad High Court.
The currency lost 18 paisa to the Pound Sterling as the day's closing quote stood at PKR 358.99 per GBP, while the previous session closed at PKR 358.81 per GBP.
On the other hand, PKR's value strengthened by 97 paisa against EUR which closed at PKR 312.69 at the interbank today.
In FYTD, PKR lost 79.99 rupees or 28.08%, while it plummeted by 58.41 rupees or 20.51% against the USD in CYTD. Within the last seven sessions, the local unit moved down by 0.33%, as per data compiled by Mettis Global.
On another note, within the money market, the overnight repo rate towards the close of the session was 20.25%/20.5%, whereas the 1-week rate was 20.65%/20.75%.
Copyright Mettis Link News
Posted on: 2023-05-09T16:38:18+05:00
