PKR plunges to 206.46, down by 1.3 rupee

June 15, 2022 (MLN): In the backdrop of ongoing uncertainty regarding IMF and fear of not getting out from FATF’s grey list, the Pakistani rupee (PKR) has lost further 1.3 rupees as the currency settled the interbank session at PKR 206.46 per USD.

Within the open market, the local unit has surpassed the mark of 207, trading at 205.50/207.50 per USD.

The rupee endured a volatile trading session with quotes being recorded in a range of 1.68 rupees per USD showing an intraday high bid of 206.75 and an intraday low offer of 205.75.

Speaking to Mettis Global, Ahsan Mehanti, Director Arif Habib Group said, “Rupee is falling on uncertainty over FATF decision for exclusion from grey list, and IMF bailout program approval.”

The import cover has dropped to an alarming level (1.35 months) owing to the depleting foreign exchange reserves and surging import bill which has also increased the pressure on PKR, he added.

It is pertinent to mention that since the coalition government has taken a charge, PKR lost its value in the interbank market by 24 per USD while in the open market, it has dropped by 23 per USD.

From July’21 to date, the local unit has lost Rs48.91 against the USD. Similarly, the rupee fell by Rs29.94 in CYTD, with the month-to-date (MTD) position showing a decline of 3.87%, as per data compiled by Mettis Global.

During the last 52 weeks, PKR lost 24.08% against the greenback while reaching its lowest at 206.46 today, and the highest of 156.74 on June 17, 2021.

Furthermore, the local unit has weakened by 13.72% since its high on July 02, 2021, against EUR while, it has dropped by 12.89% against GBP since its high on July 02, 2021.

In addition, the performance of PKR remained bleak in the last seven sessions as it weakened by 2.39%, 2.37%, 1.99%, 1.67%, and 0.52% against AED, SAR, CNY, JPY, and EUR, respectively. On the other hand, the local unit has appreciated against GBP by 1.21% during the same period. 

Alternatively, the currency gained 42 paisa against the Pound Sterling as the day's closing quote stood at PKR 249.41 per GBP, while the previous session closed at PKR 249.83 per GBP.

On the other hand, PKR's value weakened by 1.6 rupees against EUR which closed at PKR 216.49 at the interbank today.

On another note, within the money market, the overnight repo rate towards the close of the session was 14.00/14.10 percent, whereas the 1-week rate was 13.75/13.85 percent.

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