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PKR gains 1.1 rupees in a week

April 30, 2022 (MLN): Owing to the constructive talks with the International Monetary Fund (IMF), the Pakistani rupee (PKR) managed to recover some of its losses against the greenback during the outgoing week, appreciating by 1.1 rupees as the currency settled the week’s trade at 185.69, compared to the previous week’s close of PKR 186.75 per USD.

The local unit witnessed minimal activity in today’s session wherein the currency lost only 5 paisa, as per data reported by the State Bank of Pakistan (SBP) on Saturday.

Traders in the money market cheered this positive development wherein the fund expects to field a mission to Pakistan in May to resume discussions over policies for completing the 7th EFF review.

Pakistan side had also requested the IMF to extend the EFF arrangement through June 2023 as a signal of their commitment to address existing challenges and achieve the program objectives.

In addition, Pakistan had agreed to roll back subsidies to the oil and power sectors ahead of the resumption next month of a review of the agency's support for the country.

According to the money market experts, in the wake of depleting foreign exchange reserves, the economy will once again get breathing space after the loan is sanctioned.

However, in Thursday’s session, the local unit had snapped its gaining streak as gloomy macros have once again started creating a spell of depreciation over PKR.

From July’21 to date, the local unit has lost Rs28.14 against the USD. Similarly, the rupee fell by Rs9.17 in CYTD, with the month-to-date (MTD) position showing a drop of 1.19%, as per data compiled by Mettis Global.

During the last 52 weeks, PKR lost 17.99% against the greenback, reached its lowest at 185.69 today, and touched its high of 152.27 on May 7, 2021.

Furthermore, the local unit has weakened by 6.28% since its high on May 5, 2021, against EUR while, it has dropped by 9.18% against GBP since its high on May 7, 2021.

In addition, the performance of PKR remained satisfactory against major during the month as it strengthened by 5.61%, 4.59%, 4.17%, 3.24%, and 2.95% against JPY, EUR, CHF, GBP, and CNY respectively. On the other hand, the domestic currency weakened by 1.29% and 1.19% against SAR and AED, respectively during the same period.

Within the Open Market, PKR was traded at 186/187 per USD.

Meanwhile, the currency lost 83 paisa to the Pound Sterling as the day's closing quote stood at PKR 233.46 per GBP, while the previous session closed at PKR 232.64 per GBP.

Similarly, PKR's value weakened by 4 paisa against EUR which closed at PKR 195.75 at the interbank today.

On another note, within the money market, the overnight repo rate towards the close of the session was 13.00/13.20 percent, whereas the 1-week rate was 12.55/12.65 percent.

Copyright Mettis Link News

 

Posted on: 2022-04-30T20:05:42+05:00

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