PKR gains around 7 paisa against USD

July 26, 2024 (MLN): The Pakistani rupee (PKR) appreciated by 6.79 paisa against the US dollar in Friday's interbank session as the currency settled the trade at PKR 278.34 per USD, compared to the previous session's closing of PKR 278.41 per USD.

The currency saw an intraday high (bid) of 278.70 and a low (ask) of 278.50.

In the open market, exchange companies quoted the dollar at 278 for buying and 279.75 for selling.

On a weekly basis, the domestic currency has witnessed a loss of over 21 paisa against the mighty Dollar.

JPMorgan in its latest research report has highlighted that fespite Pakistan’s Balance of Payment (BoP) account being in a healthy position, there is anticipation of a weaker PKR in the near term due to the final clearance of dividend backlogs.

"In our estimates, we do not view PKR as being overly expensive," the report added.

That said, although the International Monetary Fund (IMF) states that all FX restrictions have been removed, the agency assesses that there may still be a few informal restrictions relating to the repatriation of dividends.

Assuming these are fully eliminated at the start of the Extended Fund Arrangement (EFF), then it could result in USD/PKR moving moderately higher over the coming months.

In comparison to major currencies, PKR lost 3.77 paisa against the Euro, closing at 302.05 compared to the previous value of 302.01.

The British Pound became cheaper by 85.3 paisa closing at 358.21 compared to 359.06 from a day ago.

The Swiss franc saw losses of 97.16 paisa, closing at 315.15 compared to 316.12 from the previous session.

Against the Japanese Yen, PKR gained 2.04 paisa, closing at 1.8077 versus 1.8281 a day ago.

The Chinese Yuan lost 14.7 paisa, closing at 38.39 against 38.53 from the previous session.

The Saudi Riyal closed at 74.19 with a loss of 2 paisa from its value of 74.21 a day ago.

The U.A.E Dirham decreased in value by 1.95 paisa from 75.78 a day ago to 75.8.

During the current financial year, PKR has appreciated against the Dollar by 0.3 paisa or 0%. While the current calendar year has seen PKR appreciate by 3.52 rupees or 1.27%.

In the Money Market, the benchmark 6 Month Karachi Interbank Bid and Offer rates inched down by 2 bps to 19.16% and 19.41%.

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 Rs9.55 trillion into the market.

Of the total amount, Rs9.5tr was injected through reverse repo OMO.

Meanwhile, the remaining Rs45 billion was injected through Shariah-compliant Modarabah-based OMO.

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