PKR plunges by 4.46 rupees over the week against greenback

September 01, 2023 (MLN): The Pakistani rupee (PKR) appreciated by 7 paisa against the US dollar in Friday's interbank session as the currency settled the trade at PKR 305.467 per USD, compared to the previous session's closing of PKR 305.54 per USD.

The currency saw an intraday high (bid) of 306.25 and a low (ask) of 306.

In the open market, Exchange Companies quoted the dollar at 324 for buying and 329 for selling.

The local unit continues to face immense pressure as the removal of restrictions on letters of credit (LCs) has led to an increased demand for dollars.

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.

Additional pressure comes through political uncertainty, which is causing turbulence in local markets.

During the week PKR depreciated by 4.46 rupees or 1.46% compared to the previous week's closing of 301.0031.

In comparison to major currencies, PKR gained 1.18 rupees against the Euro, closing at 331.52 compared to the previous value of 332.70.

The British Pound became cheaper by 54.86 paisa closing at 387.42 compared to 387.97 a day ago.

The Swiss franc saw losses of 1.02 rupees, closing at 346.14 compared to 347.16 from the previous session.

Against the Japanese Yen, PKR lost 0.5 paisa, closing at 2.10 versus 2.10 a day ago.

The Chinese Yuan gained 15.23 paisa, closing at 42.06 against 41.91 from the previous session.

The Saudi Riyal decreased in value by 2.06 paisa from 83.18 a day ago to 83.16.

The U.A.E Dirham closed at 81.44 with a loss of 1.36 paisa from its value of 81.46 a day ago.

During the current financial year, PKR has depreciated against the Dollar by 19.48 rupees or 6.38%. While the current calendar year has seen PKR depreciate by 79.04 rupees or 25.87%.

In the Money Market, the benchmark 6 Month Karachi Interbank Bid and Offer rates inched up by 22 bps to 23.18% and 23.43%.

Furthermore, the State Bank of Pakistan (SBP) conducted an Open Market Operation (OMO), and Shariah-compliant Mudarabah OMO today, in which it cumulatively injected a total of Rs1.12 trillion into the market. 

 Of which Rs1.05tr were injected through reverse repo purchase. 

The remaining Rs73bn was injected through Shariah-Compliant Modarabah-based OMO. 

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