PKR ends its historical 28-day winning streak against USD

October 17, 2023 (MLN): The Pakistani rupee (PKR) ended its 28-day upward trajectory by depreciating 20 paisa against the US dollar in Tuesday's interbank session to settle at PKR 277.03 as compared to the previous day's closing of PKR 276.83.

The local unit saw an intraday high (bid) of 277.2 and a low (ask) of 275.75.

In the open market, the local unit remained stable as the exchange companies quoted the dollar at 274 for buying and 277 for selling.

The local currency has been strengthening for almost one straight month amid the ongoing army-backed crackdown to restrict illegal dollar outflows, along with other administrative measures implemented by the government.

Moreover, reforms introduced by the State Bank of Pakistan (SBP) to consolidate and transform various types of exchange companies into a single category with a well-defined mandate and higher capital requirements are enhanced transparency.

To note, SBP suspended the authorization of five exchange companies of B- Category last week, underscoring the central bank's commitment to ensuring compliance with regulatory standards.

This comes in addition to the suspension of four exchange companies in the previous month.

These reforms also apply to the banks actively engaged in foreign exchange business, mandating them to set up wholly owned ECs to address the legitimate foreign exchange needs of the general public.

Following the guidelines of the central bank, certain banks such as; Habib Metropolitation Bank (PSX: HMB), Bank Al Falah Limited (BAFL), Faysal Bank Limited (PSX: FABL),  Allied Bank Limited (PSX: ABL), Bank Al Habib Limited (PSX: BAHL), MCB Bank Limited (PSX: MCB), Meezan Bank Limited (PSX: MEBL), and United Bank Limited (PSX: UBL), have decided to establish their own exchange company.

In comparison to major currencies, PKR lost 48.72 paisa against the Euro, closing at 292.1 compared to the previous value of 291.62.

The British Pound became expensive by 9.05 paisa closing at 337.12 compared to 337.03 from a day ago.

The Swiss franc saw gains of 67.99 paisa, closing at 307.15 compared to 306.47 from the previous session.

Against the Japanese Yen, PKR lost 0.05 paisa, closing at 1.852 versus 1.851 a day ago.

The Chinese Yuan gained 1.02 paisa, closing at 37.8736 against 37.8634 from the previous session.

The Saudi Riyal closed at 73.86 with a loss of 5.22 paisa from its value of 73.8 a day ago.

The U.A.E Dirham increased in value by 5.63 paisa from 75.368 a day ago to 75.424.

During the current financial year, PKR has appreciated against the Dollar by 8.96 rupees or 3.23%. While the current calendar year has seen PKR depreciate by 50.6 rupees or 18.27%.

In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates inched down by 4 bps to 22.48% and 22.73%.

Performance Summary

52 Week Performance

Copyright Mettis Link News