August 23, 2023 (MLN): The Pakistani rupee (PKR) continued its downward trend on Wednesday, depreciating by 63 paisa against the US dollar in the interbank and settling at PKR 299.635 per USD, compared to the previous session's closing of PKR 299.007 per USD.
The currency saw an intraday high (bid) of 300.25 and a low (ask) of 300.
In the open market, Exchange Companies quoted the dollar at 311 for buying and 314 for selling.
“High demand for the dollar is putting pressure on the rupee’s value, and the process of controlling the dollar will be time-consuming,” Dr. Inayat Hussain, Deputy Governor of the State Bank of Pakistan (SBP) stated.
Many individuals have heavily invested in dollars, which has further worsened the situation.
Despite the agreements with the International Monetary Fund (IMF), the rupee's stability remains a challenge, as noted by the Chairman of the Senate Committee.
Recalling the IMF staff report issued on July 18, 2023, a market-determined exchange rate was recommended to absorb external pressures. Consequently, the government's ability to control the rupee through trade restrictions has been limited.
The removal of restrictions on letters of credit (LCs) has led to an increased demand for dollars.
To note, import numbers for July showed a massive increase of 29.80% MoM to $5.03bn as compared to $3.88bn in June.
However, importers in Pakistan are finding it difficult to obtain import permits for their manufacturing needs due to dollar shortages, resulting in cargoes remaining stuck in ports.
It is worth mentioning that the IMF has obtained letters of commitment from various political parties regarding economic measures.
Additionally, the local unit faces pressure amid political uncertainty surrounding the general elections, which is causing turbulence in local markets.
In comparison to major currencies, PKR gained 2.1 rupees against the Euro, closing at 324.30 compared to the previous value of 326.40.
The British Pound became cheaper by 2.31 rupees closing at 380.03 compared to 382.34 a day ago.
The Swiss franc saw losses of 29.25 paisa, closing at 340.38 compared to 340.67 from the previous session.
Against the Japanese Yen, PKR lost 0.86 paisa, closing at 2.06 versus 2.052 a day ago.
The Chinese Yuan gained 10.08 paisa, closing at 41.09 against 40.99 from the previous session.
The Saudi Riyal increased in value by 17 paisa from 81.406 a day ago to 81.576.
The U.A.E Dirham closed at 79.8772 with a gain of 16.22 paisa from its value of 79.72 a day ago.
During the current financial year, PKR has depreciated against the Dollar by 13.64 rupees or 4.55%. While the current calendar year has seen PKR depreciate by 73.2 rupees or 24.43%.
In the Money Market, the benchmark 6-Month Karachi Interbank Bid and Offer rates inched up by 1 bps to 22.92% and 23.17%.
Performance Summary
| Currency | Aug 23, 2023 | Aug 22, 2023 | Change | 1 Month | FYTD | CYTD | 1 Day % | 7 Day % | 1 Month % | MTD % | FYTD % | CYTD % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| USD | 299.64 | 299.007 | -0.63 | -11.71 | -13.65 | -73.20 | -0.21 | -1.57 | -3.91 | -4.34 | -4.55 | -24.43 |
| EUR | 324.30 | 326.40 | 2.101 | -5.28 | -11.37 | -82.99 | 0.65 | -0.60 | -1.63 | -2.51 | -3.50 | -25.59 |
| GBP | 380.03 | 382.34 | 2.31 | -10.004 | -15.89 | -106.95 | 0.61 | -1.03 | -2.63 | -3.05 | -4.18 | -28.14 |
| CHF | 340.38 | 340.67 | 0.29 | -8.61 | -20.62 | -95.35 | 0.09 | -1.35 | -2.53 | -3.21 | -6.06 | -28.01 |
| JPY | 2.06 | 2.05 | -0.0086 | -0.025 | -0.069 | -0.35 | -0.42 | -1.64 | -1.23 | -2.34 | -3.33 | -16.86 |
| SAR | 79.88 | 79.72 | -0.16 | -3.12 | -3.62 | -19.67 | -0.20 | -1.54 | -3.90 | -4.34 | -4.54 | -24.63 |
| AED | 81.58 | 81.41 | -0.17 | -3.19 | -3.71 | -19.92 | -0.21 | -1.57 | -3.91 | -4.34 | -4.55 | -24.42 |
| CNY | 41.10 | 40.99 | -0.101 | -1.13 | -1.43 | -8.53 | -0.25 | -1.56 | -2.74 | -2.42 | -3.47 | -20.76 |
52 Week Performance
| Currency | High | Low | Trading Band | % Since High | % Since Low | High Date | Low Date | Days Since High | Days Since Low |
|---|---|---|---|---|---|---|---|---|---|
| USD | 217.79 | 299.64 | 81.8434 | -27.31 | 0.00 | 11-Oct-22 | 23-Aug-23 | 316 | 0 |
| EUR | 211.28 | 326.85 | 115.5722 | -34.85 | 0.79 | 11-Oct-22 | 11-May-23 | 316 | 104 |
| GBP | 240.03 | 382.34 | 142.3119 | -36.84 | 0.61 | 11-Oct-22 | 22-Aug-23 | 316 | 1 |
| CHF | 217.64 | 340.67 | 123.0315 | -36.06 | 0.09 | 11-Oct-22 | 22-Aug-23 | 316 | 1 |
| JPY | 1.47 | 2.218 | 0.7502 | -28.79 | 7.61 | 21-Oct-22 | 11-May-23 | 306 | 104 |
| SAR | 57.93 | 79.89 | 21.9461 | -27.47 | 0.00 | 11-Oct-22 | 23-Aug-23 | 316 | 0 |
| AED | 59.30 | 81.58 | 22.2810 | -27.31 | 0.00 | 11-Oct-22 | 23-Aug-23 | 316 | 0 |
| CNY | 30.07 | 43.091 | 13.0195 | -26.83 | 4.85 | 25-Oct-22 | 11-May-23 | 302 | 104 |
Copyright Mettis Link News
Posted on: 2023-08-23T15:48:54+05:00
