August 06, 2021 (MLN): Pakistani rupee (PKR) returned to its course on Friday after snapping two-day winning streak and depreciated by 23 paisa against US Dollar (USD) in the interbank session as the currency closed the day's trade at PKR 163.45.
The local unit had closed at PKR 163.23 per USD on Thursday.
According to Asad Rizvi, the former Country Treasurer of Chase Manhattan Bank, “This appreciation in USD shows covering a position on account of weekend.”
In his early morning Tweet, he stated that total foreign liquid reserves fell mildly to $24.85billion yesterday. However, the net reserves with SBP rose to $17.84bn which could be the sign of easing off the payment pressure.
“It is a good opportunity for the diaspora to start remitting as PKR is likely to inch up though at a slow pace,” he added.
The rupee saw a volatility free session as very little movement was recorded trading in a range of 44 paisa per USD showing an intraday high bid of 163.60 and an intraday Low offer of 163.25.
During the week, the currency has lost 1 rupees against the greenback, as the previous week was concluded at PKR 162.43 per USD.
Within the Open Market, PKR was traded at 163/164 per USD.
The home unit has depreciated by 3.62% and 2.21% in FY22 and CY21, respectively with the month-to-date (MTD) position showing a drop of 0.63%, as per data compiled by Mettis Global.
Meanwhile, the currency lost 48 paisa to the Pound Sterling as the day's closing quote stood at PKR 227.57 per GBP, while the previous session closed at PKR 227.09 per GBP.
On the other hand, PKR's value strengthened by 14 paisa against EUR which closed at PKR 193.04 at the interbank today.
On another note, within the money market, the State Bank of Pakistan (SBP) conducted an Open Market Operation in which it injected Rs.2.48 trillion for 7 days at 7.09 percent.
The overnight repo rate towards close of the session was 7.40/7.60 percent, whereas the 1 week rate was 7.10/7.20 percent.
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