December 13, 2022 (MLN): Continuing its downward journey, the Pakistani rupee (PKR) has slipped by 5 paisa against the US dollar (USD) in today's interbank session as the currency settled the trade at PKR 224.7 per USD, compared to the previous closing of PKR 224.65 per USD.
During the session, the rupee traded in a band of 26 paisa per USD showing an intraday high bid of 224.75 and low offer of 224.74 while in the open market, PKR was traded at 231.75/234.06 per USD.
Bleak macros along with political uncertainty and muted concerns over the country’s economic outlook amid the noise of default have kept the local unit under pressure.
The melting foreign exchange reserves in the absence of foreign inflows have reportedly created chaos in the market and as a result of this, the market is facing a dollar shortage.
Analysts and market experts are of the view that the dollar is mostly being traded in the black and grey market as these markets offer exceptionally better rates compared to what the open market offers.
Internationally, the dollar steadied on Tuesday ahead of the release of U.S. inflation data and the final Federal Reserve meeting of the year, with investors waiting to update interest rate outlooks, as Reuters reported.
At present, foreign exchange reserves held by the SBP fell by $783.8 million to $6.71 billion due to payment of $1bn against maturing Pakistan International Sukuk and some other external debt repayments.
In FYTD, PKR lost 19.85 rupees or 8.83%, while it plummeted by 48.18 rupees or 21.44% against the USD in CYTD, as per data compiled by Mettis Global.
Meanwhile, the currency lost 81 paisa to the Pound Sterling as the day's closing quote stood at PKR 275.85 per GBP, while the previous session closed at PKR 275.04 per GBP.
Similarly, PKR's value weakened by 68 paisa against EUR which closed at PKR 237.17 at the interbank today.
On another note, within the money market, the State Bank of Pakistan (SBP) conducted an Open Market Operation (OMO) today, in which it injected Rs135 billion into the market for 3 days at 16.05%.
The overnight repo rate towards the close of the session was 16.00/16.25%, whereas the 1-week rate was 15.95/16.05%.
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Posted on: 2022-12-13T16:58:49+05:00
