PKR downward momentum continues, closes at Rs302.75

August 28, 2023 (MLN): The Pakistani rupee (PKR) depreciated by 1 rupee against the US dollar in Monday's interbank session as the currency settled the trade at PKR 301.997 per USD, compared to the previous session's closing of PKR 301.003 per USD.

The currency saw an intraday high (bid) of 302.75 and a low (ask) of 302.25.

In the open market, Exchange Companies quoted the dollar at 314 for buying and 317 for selling.

The local unit continues to face immense pressure as the removal of restrictions on letters of credit (LCs) has led to an increased demand for dollars.

Recalling the IMF staff report issued on July 18, 2023, a market-determined exchange rate was recommended to absorb external pressures. Consequently, the government's ability to control the rupee through trade restrictions has been limited.

However, importers in Pakistan are finding it difficult to obtain import permits for their manufacturing needs due to dollar shortages, resulting in cargoes remaining stuck in ports.

It is worth mentioning that following four consecutive periods of current account surpluses, the country witnessed a significant shift and recorded a substantial current account deficit of $809 million in July 2023.

Additional pressure comes through political uncertainty surrounding the general elections, which is causing turbulence in local markets.

In comparison to major currencies, PKR lost 1.34 rupees against the Euro, closing at 326.16 compared to the previous value of 324.81.

The British Pound became more expensive by 79.75 paisa closing at 379.67 compared to 378.87 from a day ago.

The Swiss franc saw gains of 1.82 rupees, closing at 341.509 compared to 339.69 from the previous session.

Against the Japanese Yen, PKR lost 0.04 paisa, closing at 2.061 versus 2.06 a day ago.

The Chinese Yuan gained 11.36 paisa, closing at 41.401 against 41.288 from the previous session.

The Saudi Riyal increased in value by 27.49 paisa from 81.95 a day ago to 82.223.

The U.A.E Dirham closed at 80.50 with a gain of 26.16 paisa from its value of 80.24 a day ago.

During the current financial year, PKR has depreciated against the Dollar by 16.01 rupees or 5.3%. While the current calendar year has seen PKR depreciate by 75.57 rupees or 25.02%.

In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates remained unchanged at 22.91% and 23.16%.

Furthermore, the State Bank of Pakistan (SBP) conducted an Open Market Operation (OMO) in which it mopped up a total of Rs757.6 billion from the market.

Performance Summary

52 Week Performance

Copyright Mettis Link News