PKR edges higher by 11 paisa against USD

February 21, 2022 (MLN): Likewise other Asian currencies, the Pakistani rupee (PKR) edged higher by 11 paisa on Monday against the greenback in the interbank market to settle the trade at 175.75 per USD on the plan of holding a summit to resolve the Ukraine crisis.

According to the news reports, U.S. President Joe Biden and Russian President Vladimir Putin have agreed in principle to a summit over Ukraine, one of the most dangerous European crises in decades.

The rupee endured a relatively dull trading session with very little intraday movement, trading in a range of only 15 paisa per USD showing an intraday high bid of 175.85 and an intraday low offer of 175.75.

However, the local unit is still enduring the pressure on the back of high import bill that has become a serious threat to PKR in days to come.

During 7MFY22, $1.27bn worth of mobile phones were imported while the oil import in the same period was $11.69bn. Similarly, the import of food, machinery and automobiles has also soared.

Though remittances are providing good support, but may not be enough to prop up PKR, Asad Rizvi, the former Treasury Head at Chase Manhattan said.

Meanwhile, the local unit has lost Rs18.20 against the USD from July’21 to date, Whereas, the rupee appreciated by 0.76 paisa in CY22, with the month-to-date (MTD) position showing a gain of 0.54%, as per data compiled by Mettis Global.

On the other hand, the performance of PKR remained comparatively better against major currencies during the fiscal year to date as the local unit appreciated by 1.75%, 1.61%, 1.47%, 1.39% and 1.37% against AUD, EUR, CAD, CNY and CHF, respectively.

Within the open market, PKR was traded at 176.50/177.50 per USD.

Meanwhile, the currency gained 9 paisa against the Pound Sterling as the day's closing quote stood at PKR 239.57 per GBP, while the previous session closed at PKR 239.65 per GBP.

On the other hand, PKR's value weakened by 3 paisa against EUR which closed at PKR 200.04 at the interbank today.

On another note, within the money market, the overnight repo rate towards the close of the session was 10.10/10.25 percent, whereas the 1-week rate was 9.85/9.95 percent.

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