August 26, 2021 (MLN): Pakistani rupee (PKR) snapped four-day losing streak to settle 47 paisa higher to 165.81 against greenback on Thursday in the interbank session.
Yesterday, the local unit had closed at PKR 166.28 per USD.
Despite this gain, the home unit is still enduring the pressure due to inflated import bill.
“On March 31, 2021, PKR had closed the trade at 152.7586 and so far, it has depreciated 9% of its value due to un favorable trade gap caused by higher import bill,” Asad Rizvi, the Former Treasury Head at Chase Manhattan Bank said.
SBP’s absence to maintain foreign exchange reserve target is adding pressure on Rupee that risks sharp hike in inflation rate if it goes in checked, he added.
The rupee traded within a very narrow range of 68 paisa per USD showing an intraday high bid of 166.42 and an intraday Low offer of 165.76.
Within the Open Market, PKR was traded at 166/166.70 per USD.
The local unit has weakened by 4.98% and 3.60% in FY22 and CY21, respectively with the month-to-date (MTD) position showing a depreciation of 2.04%, as per the data compiled by Mettis Global.
Meanwhile, the currency gained 62 paisa against the Pound Sterling as the day's closing quote stood at PKR 227.74 per GBP, while the previous session closed at PKR 228.36 per GBP.
Similarly, PKR's value strengthened by 41 paisa against EUR which closed at PKR 195 at the interbank today.
On another note, within the money market, the overnight repo rate towards close of the session was 7.00/7.10 percent, whereas the 1 week rate was 7.05/7.15 percent.
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