August 15, 2022 (MLN): In the backdrop of positive sentiments, stemming from the IMF front, the Pakistani rupee (PKR) continued its upward journey against the US dollar in today's interbank session as the currency settled the trade at PKR 213.98, up by 1.5 rupees compared to previous session's closing of 215.49 per USD.
Throughout the session, the rupee traded in a range of 2.01 rupees per USD showing an intraday high bid of 214 and an intraday low offer of 212.99 while in the open market, PKR was traded at 207/211 per USD.
After enduring a rough spell of depreciation in July 2022 due to uncertainties on the political front and dismal macros, the clarity on the IMF front after the statement by Dr. Esther Perez Ruiz, IMF’s Resident Representative for Pakistan wherein she mentioned that Pakistan had completed all prior actions for loan review, has come like a savior as the currency market the recovery of 11.87% since August 1, 2022.
In addition to it, News flows pertaining to foreign exchange inflows from Saudi Arabia have strengthened the PKR rally in the interbank market. According to the Bloomberg report, the Saudi Finance Ministry is planning to renew its $3 billion deposit with the State Bank of Pakistan (SBP) as soon as this week.
The kingdom is also considering to provide $100 million a month for 10 months in petroleum products that will be granted as additional support.
It is pertinent to mention that this development came during the crucial time when Pakistan is in dire need of foreign exchange, which will pave the way for IMF’s board approval at the end of August 2022.
In FYTD, PKR lost 9.12 rupees or 4.27%, while it plummeted by 37.46 rupees or 17.51% against the USD in CYTD, as per data compiled by Mettis Global.
During the last 52 weeks, PKR lost 23.32% against the greenback while reaching its lowest at 239.94 on July 28, 2022, and the highest of 164.08 on August 17, 2021.
Furthermore, the local unit has weakened by 12.46% and 13.66% against EUR and GBP, respectively, since the high on August 20, 2021.
In addition to it, the local unit has also been weakened in FYTD by 6.15%, 5.44%, 4.27%, 4.19%, 4.06%, 3.23%, and 2.35% against JPY, CHF, AED, SAR, GBP, CNY, and EUR, respectively.
Meanwhile, the currency gained 3.3 rupees against the Pound Sterling as the day's closing quote stood at PKR 259 per GBP, while the previous session closed at PKR 262.3 per GBP.
Similarly, PKR's value strengthened by 2.8 rupees against EUR which closed at PKR 218.96 at the interbank today.
On another note, within the money market, the overnight repo rate towards the close of the session was 15.50/15.25%, whereas the 1-week rate was 14.95/15.05%.
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