December 15, 2023 (MLN): The Pakistani rupee (PKR) appreciated by over 61 paisa against the US dollar in this week and settled the trade at PKR 283.26 per USD, compared to the previous session's closing of PKR 283.72 per USD.
In today's session the local unit gained 25 paisa and witnessed an intraday high (bid) of 283.59 and a low (ask) of 283.4.
In the open market, Exchange Companies quoted the dollar at 284.5 for buying and 286.5 for selling.
To note, this marks the fifth consecutive weekly gain witnessed by the local unit against the greenback.
This upswing is attributed to the successful staff-level agreement (SLA) between the International Monetary Fund (IMF) and Pakistani authorities during the first review under the Stand-By Arrangement (SBA).
Pending approval by the IMF's Executive Board, the agreement will grant Pakistan access to SDR 528 million, around $700m.
While inflows following increased regulatory and law enforcement helped normalize import and FX payments and rebuild reserves, the authorities recognize that the rupee must remain market-determined to alleviate external pressures and rebuild reserves sustainably.
To support this, they plan to strengthen the transparency and efficiency of the FX market and refrain from administrative actions to influence the rupee.
The positivity is also fueled by the latest trade numbers for the month of November which indicate a 13.16% MoM and a 31.72% YoY reduction in the trade deficit to clock in at $1.89 billion.
Export numbers experienced a 7.66% YoY increase, reaching $2.57bn, while imports decreased by 14.47% YoY, totaling $4.46bn.
However, the local unit closed the month of November on a negative note, as it recorded a loss of 3.69 rupees against the mighty dollar, compared to the previous month's closing of 281.47 per USD.
To recall, the pressure resulting from the gap between the demand and supply of dollars prevailed over the market for days and the PKR suffered losses for four consecutive weeks.
According to Bloomberg's latest report, the local unit is set to end the year as Asia’s worst-performing currency and the losses are expected to persist in 2024.
In comparison to major currencies, PKR lost 2.9 rupees against the Euro, closing at 311.39 compared to the previous value of 308.49.
The British Pound became expensive by 3.59 rupees closing at 361.55 compared to 357.96 from a day ago.
The Swiss franc saw gains of 1.3 rupees, closing at 326.65 compared to 325.35 from the previous session.
Against the Japanese Yen, PKR gained 0.29 paisa, closing at 1.9943 versus 1.9972 a day ago.
The Chinese Yuan gained 14.31 paisa, closing at 39.86 against 39.72 from the previous session.
The Saudi Riyal closed at 75.5 with a loss of 7.53 paisa from its value of 75.58 a day ago.
The U.A.E Dirham decreased in value by 6.87 paisa from 77.13 a day ago to 77.2.
During the current financial year, PKR has appreciated against the Dollar by 2.73 rupees or 0.96%. While the current calendar year has seen PKR depreciate by 56.83 rupees or 20.06%.
In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates inched down by 4 bps to 21.26 and 21.51%.
The State Bank of Pakistan (SBP) conducted a reverse repo and Shariah-compliant Modarabah-based Open Market Operation (OMO) today, in which it cumulatively injected a total of Rs5.6 trillion into the market.
Of which Rs5.3tr were injected through reverse repo OMO.
Meanwhile, the remaining Rs200 billion was injected through Shariah-compliant Modarabah-based OMO.
Performance Summary
| Currency | Dec 15, 2023 | Dec 14, 2023 | Change | 1 Month | FYTD | CYTD | 1 Day | 7 Day | 1 Month | MTD | FYTD | CYTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| USD | 283.2576 | 283.5102 | 0.2526 | 4.119 | 2.7329 | -56.8267 | 0.09% | 0.22% | 1.45% | 0.67% | 0.96% | -20.06% |
| EUR | 311.3851 | 308.4874 | -2.8977 | 0.2174 | 1.5457 | -70.0776 | -0.93% | -1.73% | 0.07% | 0.32% | 0.5% | -22.51% |
| GBP | 361.5501 | 357.9599 | -3.5902 | -5.6485 | 2.5872 | -88.4744 | -0.99% | -1.35% | -1.56% | 0.17% | 0.72% | -24.47% |
| CHF | 326.6536 | 325.3502 | -1.3034 | -3.2133 | -6.8968 | -81.625 | -0.4% | -0.78% | -0.98% | 0.04% | -2.11% | -24.99% |
| JPY | 1.9943 | 1.9972 | 0.0029 | -0.0961 | -0.002 | -0.2807 | 0.15% | -1.25% | -4.82% | -2.71% | -0.1% | -14.08% |
| SAR | 75.5032 | 75.5785 | 0.0753 | 1.1255 | 0.7508 | -15.2982 | 0.1% | 0.24% | 1.49% | 0.68% | 0.99% | -20.26% |
| AED | 77.1273 | 77.196 | 0.0687 | 1.1151 | 0.7345 | -15.4749 | 0.09% | 0.23% | 1.45% | 0.68% | 0.95% | -20.06% |
| CNY | 39.8626 | 39.7195 | -0.1431 | -0.2578 | -0.1929 | -7.2969 | -0.36% | -0.54% | -0.65% | 0.31% | -0.48% | -18.31% |
52 Week Performance
| Currency | High | Low | Trading Band | % Since High | % Since Low | High Date | Low Date | Days Since High | Days Since Low |
|---|---|---|---|---|---|---|---|---|---|
| USD | 224.935 | 307.1 | 82.1643 | -20.59% | 8.42% | 16-Dec-22 | 05-Sep-23 | 364 | 101 |
| EUR | 238.831 | 332.701 | 93.8697 | -23.3% | 6.85% | 20-Dec-22 | 31-Aug-23 | 360 | 106 |
| GBP | 270.362 | 387.972 | 117.6101 | -25.22% | 7.31% | 06-Jan-23 | 31-Aug-23 | 343 | 106 |
| CHF | 242.017 | 347.163 | 105.1458 | -25.91% | 6.28% | 19-Dec-22 | 31-Aug-23 | 361 | 106 |
| JPY | 1.6393 | 2.2178 | 0.5785 | -17.8% | 11.21% | 16-Dec-22 | 11-May-23 | 364 | 218 |
| SAR | 59.8057 | 81.8703 | 22.0646 | -20.79% | 8.43% | 16-Dec-22 | 05-Sep-23 | 364 | 101 |
| AED | 61.2456 | 83.6089 | 22.3633 | -20.59% | 8.4% | 19-Dec-22 | 05-Sep-23 | 361 | 101 |
| CNY | 32.2465 | 43.0908 | 10.8443 | -19.11% | 8.1% | 16-Dec-22 | 11-May-23 | 364 | 218 |
Copyright Mettis Link News
Posted on: 2023-12-15T15:43:12+05:00
