December 05, 2023 (MLN): The Pakistani rupee (PKR) appreciated by over 15 paisa against the US dollar in Tuesday's interbank session as the currency settled the trade at PKR 284.38, as compared to the previous day's closing of PKR 284.53 per USD.
The local unit saw an intraday high (bid) of 285.84 and a low (ask) of 284.5.
In the open market, the local unit gained 50 paisa as exchange companies quoted the dollar at 282.5 for buying and 285.5 for selling, compared to the previous day's closing of 283 for buying and 286 for selling.
It is important to mention that this marks the sixth consecutive win for 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 1.5 rupees against the Euro, closing at 307.55 compared to the previous value of 309.06.
The British Pound became cheaper by 1.42 rupees, closing at 358.97 compared to 360.38 from a day ago.
Swiss franc saw losses of 10.16 paisa, closing at 325.22 compared to 325.32 from the previous session.
Against the Japanese Yen, PKR lost 0.18 paisa, closing at 1.937 versus 1.935 a day ago.
The Chinese Yuan lost 6.47 paisa, closing at 39.7992 against 39.8639 from the previous session.
The Saudi Riyal closed at 75.82 with a loss of 3.29 paisa from its value of 75.85 a day ago.
The U.A.E Dirham decreased in value by 3.87 paisa from 77.479 a day ago to 77.44.
During the current financial year, PKR has appreciated against the Dollar by 1.62 rupees or 0.57%. While the current calendar year has seen PKR depreciate by 57.94 rupees or 20.38%.
In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates inched up by 1 bps to 21.33% and 21.58%.
The State Bank of Pakistan (SBP) conducted a reverse repo and Shariah-Compliant Modarabah Open Market Operation (OMO) today, in which it cumulatively injected a total of Rs454.6 billion into the market.
Of which Rs434.6 were injected through reverse repo OMO.
Meanwhile, the remaining Rs20 billion was injected through Shariah-compliant Modarabah-based OMO.
Performance Summary
| Currency | Dec 5, 2023 | Dec 4, 2023 | Change | 1 Month | FYTD | CYTD | 1 Day | 7 Day | 1 Month | MTD | FYTD | CYTD |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| USD | 284.375 | 284.5289 | 0.1539 | 0.9138 | 1.6155 | -57.9441 | 0.05% | 0.40% | 0.32% | 0.28% | 0.57% | -20.38% |
| EUR | 307.5516 | 309.0554 | 1.5038 | -0.9517 | 5.3792 | -66.2441 | 0.49% | 1.57% | -0.31% | 1.57% | 1.75% | -21.54% |
| GBP | 358.9666 | 360.3844 | 1.4178 | -5.3226 | 5.1707 | -85.8909 | 0.39% | 0.38% | -1.48% | 0.89% | 1.44% | -23.93% |
| CHF | 325.2231 | 325.3247 | 0.1016 | -7.0334 | -5.4663 | -80.1945 | 0.03% | -0.30% | -2.16% | 0.48% | -1.68% | -24.66% |
| JPY | 1.9368 | 1.935 | -0.0018 | -0.0284 | 0.0555 | -0.2232 | -0.09% | -0.76% | -1.47% | 0.18% | 2.87% | -11.52% |
| SAR | 75.8172 | 75.8501 | 0.0329 | 0.2304 | 0.4368 | -15.6122 | 0.04% | 0.41% | 0.30% | 0.26% | 0.58% | -20.59% |
| AED | 77.44 | 77.4787 | 0.0387 | 0.2319 | 0.4218 | -15.7876 | 0.05% | 0.39% | 0.30% | 0.27% | 0.54% | -20.39% |
| CNY | 39.7992 | 39.8639 | 0.0647 | -0.6023 | -0.1295 | -7.2335 | 0.16% | 0.28% | -1.51% | 0.47% | -0.33% | -18.17% |
52 Week Performance
| Currency | High | Low | Trading Band | % Since High | % Since Low | High Date | Low Date | Days Since High | Days Since Low |
|---|---|---|---|---|---|---|---|---|---|
| USD | 224.108 | 307.1 | 82.9921 | -21.19% | 7.99% | 06-Dec-22 | 05-Sep-23 | 364 | 91 |
| EUR | 234.526 | 332.701 | 98.1750 | -23.74% | 8.18% | 07-Dec-22 | 31-Aug-23 | 363 | 96 |
| GBP | 270.362 | 387.972 | 117.6101 | -24.68% | 8.08% | 06-Jan-23 | 31-Aug-23 | 333 | 96 |
| CHF | 237.503 | 347.163 | 109.6603 | -26.97% | 6.75% | 06-Dec-22 | 31-Aug-23 | 364 | 96 |
| JPY | 1.6318 | 2.2178 | 0.5860 | -15.75% | 14.51% | 07-Dec-22 | 11-May-23 | 363 | 208 |
| SAR | 59.6031 | 81.8703 | 22.2672 | -21.39% | 7.98% | 06-Dec-22 | 05-Sep-23 | 364 | 91 |
| AED | 61.0148 | 83.6089 | 22.5941 | -21.21% | 7.97% | 06-Dec-22 | 05-Sep-23 | 364 | 91 |
| CNY | 32.0314 | 43.0908 | 11.0594 | -19.52% | 8.27% | 06-Dec-22 | 11-May-23 | 364 | 208 |
Copyright Mettis Link News
Posted on: 2023-12-05T15:29:14+05:00
