PKR downward momentum continues, closes at Rs269.63

January 30, 2023 (MLN): The Pakistani rupee continued its downward slide on Monday, settled at an all-time low of Rs269.63 against the greenback, and lost Rs7.03 in today's trade, as compared to the previous session closing of Rs262.60.

During the session, the rupee traded in a band of Rs10 per USD showing an intraday high bid of 270 and low offer of 260 while in the open market, PKR was traded at 272/274.50 per USD.

Since the last week, the local unit has slashed its value against the US dollar by 39.12 rupees as a result of the decision pertaining to the removal of the dollar cap in the open market on Wednesday.

Head of Research, Fahad Rauf at Ismail Iqbal Securities said, “The rupee continues to remain under pressure, as there is a limited supply.”

He further added, the price increase is not supported by any major volume, thus the price is not reflective. Once the flows come in, the new market rate would be set.

In Prime Minister Shahbaz Sharif’s government, the rupee lost almost Rs86.32 against the US dollar in the interbank market.

In FYTD, PKR lost 64.78 rupees or 24.03%, while it plummeted by 43.20% against the USD in the last seven sessions, as per data compiled by Mettis Global.

To note, the drop in the foreign exchange reserves held by the State Bank of Pakistan (SBP) of $922.8 million to $3.68 billion during the week ended on January 20, 2022, has further pressured the rupee.

Meanwhile, the currency lost 8.9 rupees to the Pound Sterling as the day's closing quote stood at PKR 333.82 per GBP, while the previous session closed at PKR 324.95 per GBP.

Similarly, PKR's value weakened by 7.1 rupees against EUR which closed at PKR 292.71 at the interbank today.

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