PKR gains 57 paisa against greenback

November 03, 2021 (MLN): Following its strengthening spree, the Pakistani rupee (PKR) continued to make ground in the interbank market as the currency closed the day’s trade at PKR 169.97 per USD, appreciating by 57 paisa, against yesterday's closing of PKR 170.54.

Though PKR continues to make gains, the impact of depreciation is skimpy to support the view that it has reinstated the competitiveness of Pakistani goods in the international market, Asad Rizvi, the former Treasury Head at Chase Manhattan said.

“This is why trade deficit continues to mount and import bill is a big threat, which needs to be fixed,” he added.

The rupee traded within a range of 0.55 paisa per USD showing an intraday high bid of 170.05 and an intraday Low offer of 169.50.

To note, the local unit appreciated by 88 paisa against the US dollar in an intraday at the interbank market as the dollar was being quoted at 169.66/76 (12:01 PST).

Within the Open Market, PKR was traded at 170/171 per USD.

According to the data gathered by Mettis Global, the domestic unit has depreciated by 7.31% or PKR 12.42 in the fiscal year-to-date against the USD. Similarly, the rupee has weakened by 5.96% or PKR 10.13 in CY21, with the month-to-date (MTD) position showing a decline of 0.49%.

Meanwhile, the currency gained 1.3 rupees against the Pound Sterling as the day's closing quote stood at PKR 231.29 per GBP, while the previous session closed at PKR 232.63 per GBP.

Similarly, PKR's value strengthened by 95 paisa against EUR which closed at PKR 196.82 at the interbank today.

On another note, within the money market, the overnight repo rate towards the close of the session was 7.50/7.60 percent, whereas the 1-week rate was 7.40/7.45 percent.

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