March 14, 2024 (MLN): The Pakistani rupee (PKR) showed minimal movement, gaining 1.36 paisa against the US dollar in Thursday's interbank session, to settle at PKR 278.77 per USD, compared to the previous session's closing of PKR 278.79 per USD.
The currency saw an intraday high (bid) of 279.15 and a low (ask) of 278.65.
In the open market, exchange companies quoted the dollar at 278.57 for buying and 281.22 for selling.
This sudden strengthening of domestic currency can be attributed to exporters selling Dollars in forward, leading to a drop in premiums.
According to Goldman Sachs’ GSDEER framework, PKR is nearly 20% undervalued on a 12-month horizon and offers about 26% nominal carry.
The Goldman Sachs Economic Research report further suggests that positive real rates could be the catalyst needed for the Rupee's value increase, provided inflation rates begin to decline.
It is crucial to note that Muhammad Aurangzeb has officially taken over the responsibility as Finance Minister of Pakistan.
Moreover, Pakistan has met all Structural Benchmarks, Qualitative Performance Criteria, and Indicative Targets for the final tranche of $1.1 billion, a press release issued by the finance division highlighted today.
In comparison to major currencies, PKR lost 15.24 paisa against the Euro, closing at 304.89 compared to the previous value of 304.74.
The British Pound became expensive by 30.32 paisa closing at 356.97 compared to 356.66 from a day ago.
The Swiss franc saw losses of 70.13 paisa, closing at 316.86 compared to 317.56 from the previous session.
Against the Japanese Yen, PKR gained 0.13 paisa, closing at 1.8856 versus 1.8869 a day ago.
The Chinese Yuan lost 0.02 paisa, closing at 38.76 against 38.76 from the previous session.
The Saudi Riyal closed at 74.33 with a loss of 0.16 paisa from its value of 74.33 a day ago.
The U.A.E Dirham decreased in value by 0.47 paisa from 75.9 a day ago to 75.9.
During the current financial year, PKR has appreciated against the Dollar by 7.22 rupees or 2.59%. While the current calendar year has seen PKR appreciate by 3.09 rupees or 1.11%.
In the Money Market, the benchmark 6 Month Karachi Interbank Bid and Offer rates remained unchanged at 21.1% and 21.35%.
The auction conducted by the central bank yesterday for the sale of government bonds again witnessed a drop in yields.
Compared to the last PIB auction held on February 14, 2024, the yields for the 3-year, 5-year, and 10-year PIBs all inched lower by 2bps, 6bps, and 15bps, respectively.
Investors are now bracing for the upcoming monetary policy decision, wherein the market is somewhat divided on the appropriate action for the State Bank of Pakistan.
Performance Summary
| Currency | Mar 14, 2024 | Mar 13, 2024 | Change | 1 Month | FYTD | CYTD | 1 Day | 7 Day | 1 Month | MTD | FYTD | CYTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| USD | 278.772 | 278.7856 | 0.0136 | 0.6064 | 7.2185 | 3.0887 | 0% | 0.18% | 0.22% | 0.12% | 2.59% | 1.11% |
| EUR | 304.893 | 304.7406 | -0.1524 | -5.0361 | 8.0378 | 6.6053 | -0.05% | -0.22% | -1.65% | -0.81% | 2.64% | 2.17% |
| GBP | 356.9676 | 356.6644 | -0.3032 | -6.4594 | 7.1697 | 1.6296 | -0.08% | -0.39% | -1.81% | -1.04% | 2.01% | 0.46% |
| CHF | 316.8584 | 317.5597 | 0.7013 | -0.9266 | 2.8984 | 18.2114 | 0.22% | -0.02% | -0.29% | 0.25% | 0.91% | 5.75% |
| JPY | 1.8856 | 1.8869 | 0.0013 | -0.0246 | 0.1067 | 0.1039 | 0.07% | 0.05% | -1.3% | -1.08% | 5.66% | 5.51% |
| SAR | 74.3313 | 74.3329 | 0.0016 | 0.1617 | 1.9227 | 0.8315 | 0% | 0.18% | 0.22% | 0.12% | 2.59% | 1.12% |
| AED | 75.8997 | 75.9044 | 0.0047 | 0.1661 | 1.9621 | 0.843 | 0.01% | 0.19% | 0.22% | 0.12% | 2.59% | 1.11% |
| CNY | 38.7574 | 38.7576 | 0.0002 | 0.0797 | 0.9123 | 0.874 | 0% | 0.1% | 0.21% | 0.1% | 2.35% | 2.26% |
52 Week Performance
| Currency | High | Low | Trading Band | % Since High | % Since Low | High Date | Low Date | Days Since High | Days Since Low |
|---|---|---|---|---|---|---|---|---|---|
| USD | 275.438 | 307.1 | 31.6619 | -1.2% | 10.16% | 04-Jul-23 | 05-Sep-23 | 254 | 191 |
| EUR | 291.618 | 332.701 | 41.083 | -4.35% | 9.12% | 16-Oct-23 | 31-Aug-23 | 150 | 196 |
| GBP | 337.032 | 387.972 | 50.9401 | -5.58% | 8.69% | 16-Oct-23 | 31-Aug-23 | 150 | 196 |
| CHF | 304.802 | 347.163 | 42.3606 | -3.8% | 9.56% | 17-Mar-23 | 31-Aug-23 | 363 | 196 |
| JPY | 1.851 | 2.2178 | 0.3668 | -1.83% | 17.62% | 16-Oct-23 | 11-May-23 | 150 | 308 |
| SAR | 73.4412 | 81.8703 | 8.4291 | -1.2% | 10.14% | 04-Jul-23 | 05-Sep-23 | 254 | 191 |
| AED | 74.9888 | 83.6089 | 8.6201 | -1.2% | 10.16% | 04-Jul-23 | 05-Sep-23 | 254 | 191 |
| CNY | 37.8634 | 43.0908 | 5.2274 | -2.31% | 11.18% | 16-Oct-23 | 11-May-23 | 150 | 308 |
Copyright Mettis Link News
Posted on: 2024-03-14T14:35:25+05:00
