PKR rally continues in the interbank market

November 2, 2021 (MLN): The Pakistani Rupee (PKR) extended its upward trajectory as the currency closed the trade at 170.54 per US dollar, appreciating by 75 paisa in today's interbank session, against last session's closing of PKR 171.29 per USD.

The rupee saw a volatile session as it traded in a range of 1.5 rupees per USD showing an intraday high bid of 171.50 and an intraday Low offer of 170.00.

Amid ongoing positive developments, PKR started to gain its lost ground in the interbank market. In his morning tweet, Asad Rizvi, Former Treasury Head-Chase Manhattan Bank said, “Saudi facility to Pakistan was provided from its Special Drawing Rights (SDR) allocated funds.

Its quota was increased to 9577.5mn & is allowed to lend excess funds. This means the facility is conditional that may need a few more adjustments. PKR will stabilize while the rate hike is on cards, he noted.

Within the Open Market, PKR was traded at 169.50/172.00 per USD.

According to the data compiled by Mettis Global, the domestic unit has depreciated by 7.62% or PKR 12.99 in the fiscal year-to-date against the USD. Similarly, the rupee has weakened by 6.28% or PKR 10.7 in CY21, with the month-to-date (MTD) position showing a decline of 0.65%.

Meanwhile, the currency gained 1.2 rupees against the Pound Sterling as the day's closing quote stood at PKR 232.63 per GBP, while the previous session closed at PKR 233.84 per GBP.

Similarly, PKR's value strengthened by 38 paisa against EUR which closed at PKR 197.78 at the interbank today.

On another note, within the money market, the overnight repo rate towards close of the session was 7.50/7.60 percent, whereas the 1 week rate was 7.40/7.45 percent.

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