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PKR on a gaining spree, up by Rs2.6/USD

August 04, 2022 (MLN): Riding on the upward trail against the greenback, the Pakistani rupee (PKR) has further appreciated by 2.6 rupees in today's interbank session as the currency closed the trade at PKR 226.15 compared to yesterday's closing of 228.8 per USD.

The rupee endured a volatile trading session with quotes being recorded in a range of six rupees per USD showing an intraday high bid of 226.05 and an intraday low offer of 225 while in the open market, PKR was traded at 221/226 per USD.

It is pertinent to mention that in a series of two sessions, PKR made a historic comeback as it gained over 12.4 rupees on the back of improving economic fundamentals.

Thanks to the Army Chief Qamar Javed Bajwa who asked the US Deputy Secretary of State Wendy Sherman for help in securing an early loan dispersal from the International Monetary Fund (IMF). After this, the positive statement from IMF stemmed the positive sentiments in the interbank market as the uncertainty started wearing off, Zafar Paracha, the chairman of the Exchange Companies Association of Pakistan (ECAP) told Mettis Global.

Talking about the outlook of the domestic unit, Malik Bostan, President of Forex Association of Pakistan said, the rupee’s stability and duration of the bull run depend on the political situation. If the government does not go for early elections, the certainty will prevail in the market and the rupee will bounce back to 180-190 per USD.

He also appreciated the efforts being made by SBP to remove the volatility in the exchange rate and the difference between the interbank rate and the rate offered by Exchange Companies (ECs) and banks to their customers.

On Wednesday, SBP in a press statement said that it has increased the monitoring of the foreign exchange operations of ECs and banks.

In FYTD, PKR lost 21.3 rupees or 9.42%, while it plummeted by 49.64 rupees or 21.95% against the USD in CYTD, as per data compiled by Mettis Global.

During the last 52 weeks, PKR lost 27.83% against the greenback while reaching its lowest at 239.94 on July 28, 2022, and the highest of 163.22 on August 05, 2021.

Furthermore, the local unit has weakened by 16.75% and 18.66% against EUR and GBP, respectively, since the high on August 20, 2021.

The local unit has also been appreciated by 6.99%, 6.81%, 6.32%, 6.32%, 6.24%, 5.89%, and 5.89%, against JPY, CHF, GBP, EUR, CNY, SAR, and AED, respectively. 

Meanwhile, the currency gained 3.9 rupees against the Pound Sterling as the day's closing quote stood at PKR 274.91 per GBP, while the previous session closed at PKR 278.78 per GBP.

Similarly, PKR's value strengthened by 2.8 rupees against EUR which closed at PKR 230.25 at the interbank today.

On another note, within the money market, the central bank conducted an Open Market Operation (OMO) in which it injected Rs199.5 billion into the money market for 1-day at 15.15%.

The overnight repo rate towards the close of the session was 15.00/15.50%, whereas the 1-week rate was 14.65/14.75%.

Copyright Mettis Link News

Posted on:2022-08-04T16:54:33+05:00

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