July 04, 2022 (MLN): With every passing day, hopes of revival of an International Monetary Fund program (IMF) grow stronger, injecting optimism into the forex market. On Monday, the Pakistani Rupee (PKR) continued to extend gains against the US Dollar (USD), appreciating by 28 paisa to close the trade at 204.56 per USD.
In the last trading session, the domestic unit had closed at 204.85 per USD.
The rupee was traded in a range of 1 rupee, showing an intraday high bid of 204.75 and an intraday low offer of 204.25.
While, in the open market, PKR was traded at 203.50/205.50 per USD.
Following the announcement of the Memorandum of Economic and Financial Policies (MEFP) received from IMF for the combined 7th and 8th reviews, the rupee started gains against the greenback in the interbank market.
Experts are of the view that this was the most significant step to validate that both sides have reached an agreement for the revival of $6 billion programs.
The market also expects an increase in remittances inflows ahead of Eid ul Azha.
While, speaking to Mettis Global, Zafar Paracha, President of Exchange Companies of Pakistan said, “Despite the expected inflows from IMF, China and Saudi, PKR will remain under pressure in the long term as the government has to repay debts in FY23.”
In CYTD, the local unit plummeted by Rs13.71 or 28.05% against the USD while in the month of June 2022, PKR registered a decline of 3.25% against the greenback, as per data compiled by Mettis Global.
During the last 52 weeks, PKR lost 22.68% against the greenback while reaching its lowest at 211.93 on June 22, 2022, and the highest of 158.17 on July 05, 2021.
Furthermore, the local unit has weakened by 12.04% since its high on July 06, 2021, against EUR, while it has depreciated by 11.57% against GBP since its high on July 07, 2021.
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Meanwhile, the currency gained by 69 paisa or 0.28% against the Pound Sterling as the day's closing quote stood at PKR 247.79 per GBP, while the previous session closed at PKR 248.48 per GBP.
Similarly, PKR's value strengthened by 49 paisa or 0.23% against EUR which closed at PKR 213.32 at the interbank today.
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On another note, within the money market, the overnight repo rate towards the close of the session was 13.00/13.25 percent, whereas the 1-week rate was 13.45/13.55 percent.
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