October 26, 2022 (MLN): The political noise has once again created chaos in the interbank market as it forced the Pakistani rupee (PKR) to snap its three-day winning streak, depreciating 95 paisa against the US dollar in the interbank session.
The currency settled the day's trade at PKR 220.68 per USD compared to yesterday's closing of PKR 219.73 per USD.
During the session, the rupee traded in a band of over one rupee per USD showing an intraday high bid of 220.75 and low offer of 219.90 while in the open market, PKR was traded at 222/223.50 per USD.
Political tension amidst PTI’s announcement of the long march which is going to be started on Friday along with the dollar shortage in the market PKR to lose against the US dollar.
Earlier, Zafar Paracha, General Secretary at the Exchange Companies Association of Pakistan (ECAP) told that the dollar is being traded at Rs232 through unauthorized channels and this is why sellers are attracted to the grey market, thus, avoiding formal channels of exchange companies.
Meanwhile, the currency lost 6.8 rupees to the Pound Sterling as the day's closing quote stood at PKR 255.43 per GBP, while the previous session closed at PKR 248.67 per GBP.
Similarly, PKR's value weakened by 4.5 rupees against EUR which closed at PKR 221.37 at the interbank today.
On another note, within the money market, the overnight repo rate towards the close of the session was 14.25/14.50 percent, whereas the 1-week rate was 14.95/15.05 percent.
