December 01, 2023 (MLN): The Pakistani rupee (PKR) appreciated by around 41 paisa against U.S. Dollar this week and settled at PKR 284.97, compared to the previous week's closing of PKR 285.37 per USD.
In today's session, the local unit gained 20 paisa against the greenback, witnessing an intraday high (bid) of 285.84 and a low (ask) of 285.
In the open market, the local unit gained 50 paisa as exchange companies quoted the dollar at 283.5 for buying and 286.5 for selling, compared to the previous day's closing of 284 for buying and 287 for selling.
To note, this marks the third 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.
Moreover, in a recent development, Pakistan is likely to receive funds worth $1.5 billion from global lenders upon the IMF's approval of the loan tranche under the $3bn SBA, the caretaker finance minister, Dr Shamshad Akhtar stated during an interview with a local news channel.
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 post, 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 gained 1.87 rupees against the Euro, closing at 310.5 compared to the previous value of 312.37.
The British Pound became cheaper by 2.12 rupees, closing at 360.05 compared to 362.18 from a day ago.
Swiss franc saw losses of 90.37 paisa, closing at 325.88 compared to 326.78 from the previous session.
Against the Japanese Yen, PKR gained 1.82 paisa, closing at 1.922 versus 1.94 a day ago.
The Chinese Yuan lost 10.36 paisa, closing at 39.8829 against 39.9865 from the previous session.
The Saudi Riyal closed at 75.97 with a loss of 4.58 paisa from its value of 76.01 a day ago.
The U.A.E Dirham decreased in value by 5.6 paisa from 77.653 a day ago to 77.597.
During the current financial year, PKR has appreciated against the Dollar by 1.02 rupees or 0.36%. While the current calendar year has seen PKR depreciated by 58.53 rupees or 20.54%.
In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates inched up by 1 bps to 21.23% and 21.48%.
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 Rs1.288 trillion into the market. Of which Rs1.218tr were injected through reverse repo OMO.
Meanwhile, the remaining Rs70 billion was injected through Shariah-compliant Modarabah-based OMO.
Moreover, the central bank conducted an auction on Wednesday in which it sold Market Treasury Bills (MTBs) worth Rs1.165 trillion for 3,6 and 12 months against a target of Rs900bn.
Cut off yields for 3, 6, and 12 months were 21.4499%, 21.4299%, and 21.4300%.
This means that the cut-off yields for 3, 6, and 12 months fell by 5bps, 7bps, and 7bps respectively.
Performance Summary
| Currency | Dec 1, 2023 | Nov 30, 2023 | Change | 1 Month | FYTD | CYTD | 1 Day | 7 Day | 1 Month | MTD | FYTD | CYTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| USD | 284.9656 | 285.1676 | 0.2020 | -1.5406 | 1.0249 | -58.5347 | 0.07% | 0.14% | -0.54% | 0.07% | 0.36% | -20.54% |
| EUR | 310.4985 | 312.3726 | 1.8741 | -10.0680 | 2.4323 | -69.1910 | 0.60% | 0.26% | -3.24% | 0.60% | 0.78% | -22.28% |
| GBP | 360.054 | 362.1771 | 2.1231 | -15.3100 | 4.0833 | -86.9783 | 0.59% | -0.52% | -4.25% | 0.59% | 1.13% | -24.16% |
| CHF | 325.8798 | 326.7835 | 0.9037 | -12.7548 | -6.1230 | -80.8512 | 0.28% | -0.92% | -3.91% | 0.28% | -1.88% | -24.81% |
| JPY | 1.922 | 1.9402 | 0.0182 | -0.0376 | 0.0703 | -0.2084 | 0.95% | -0.75% | -1.96% | 0.95% | 3.66% | -10.84% |
| SAR | 75.9675 | 76.0133 | 0.0458 | -0.4127 | 0.2865 | -15.7625 | 0.06% | 0.16% | -0.54% | 0.06% | 0.38% | -20.75% |
| AED | 77.5966 | 77.6526 | 0.0560 | -0.4311 | 0.2652 | -15.9442 | 0.07% | 0.14% | -0.56% | 0.07% | 0.34% | -20.55% |
| CNY | 39.8829 | 39.9865 | 0.1036 | -1.1578 | -0.2132 | -7.3172 | 0.26% | 0.04% | -2.90% | 0.26% | -0.53% | -18.35% |
52 Week Performance
| Currency | High | Low | Trading Band | % Since High | % Since Low | High Date | Low Date | Days Since High | Days Since Low |
|---|---|---|---|---|---|---|---|---|---|
| USD | 223.689 | 307.1 | 83.4104 | -21.50% | 7.77% | 02-Dec-22 | 05-Sep-23 | 364 | 87 |
| EUR | 234.526 | 332.701 | 98.1750 | -24.47% | 7.15% | 07-Dec-22 | 31-Aug-23 | 359 | 92 |
| GBP | 270.362 | 387.972 | 117.6101 | -24.91% | 7.75% | 06-Jan-23 | 31-Aug-23 | 329 | 92 |
| CHF | 237.503 | 347.163 | 109.6603 | -27.12% | 6.53% | 06-Dec-22 | 31-Aug-23 | 360 | 92 |
| JPY | 1.6318 | 2.2178 | 0.5860 | -15.10% | 15.39% | 07-Dec-22 | 11-May-23 | 359 | 204 |
| SAR | 59.5148 | 81.8703 | 22.3555 | -21.66% | 7.77% | 02-Dec-22 | 05-Sep-23 | 364 | 87 |
| AED | 60.8993 | 83.6089 | 22.7096 | -21.52% | 7.75% | 02-Dec-22 | 05-Sep-23 | 364 | 87 |
| CNY | 31.7411 | 43.0908 | 11.3497 | -20.41% | 8.04% | 02-Dec-22 | 11-May-23 | 364 | 204 |
Copyright Mettis Link News
Posted on: 2023-12-01T15:39:18+05:00
