May 12, 2023 (MLN): On the back of Imran Khan's release, the Pakistani rupee (PKR) made a strong comeback, registering a remarkable single-day appreciation of 13.8 rupees against the US dollar in today's interbank session.
The currency settled the trade at PKR 285.08 per USD, compared to the previous closing of PKR 298.93 per USD.
Throughout today’s session, the local unit traded in a band of 3.1 rupees, showing an intraday high bid of 286.10 and a low offer of 283 while in the open market, PKR was traded at 292/294 per USD.
The momentous rebound of the local unit is attributed to the Supreme Court's order on Thursday to release PTI's Chairman Imran Khan, terming the arrest unlawful. Later, on Friday, the Islamabad High Court (IHC) him a two-week bail in the Al-Qadir Trust case.
On Tuesday, rangers arrested Imran Khan in the Al-Qadir Trust case from outside Islamabad High Court.
With regards to the outlook of PKR, the analyst fraternity is of the view that political stability is the major requirement to restore economic stability which ultimately supports the local unity to get stabilized.
This political situation raised the concerns of market participants who were anticipating a further hike in the dollar's value.
According to the experts, the aforestated anticipation of a further hike in the dollar's value was forcing importers to arrange as many dollars as soon as possible.
At the same time, export receipts were not being encashed by the exporters to get maximum benefits in the future.
However, today's significant appreciation of local unit kept the exporters in worry who left behind encashing their receipts.
Meanwhile, the currency gained 19.4 rupees against the Pound Sterling as the day's closing quote stood at PKR 356.97 per GBP, while the previous session closed at PKR 376.33 per GBP.
Similarly, PKR's value strengthened by 15.9 rupees against EUR which closed at PKR 310.95 at the interbank today.
In FYTD, PKR lost 80.23 rupees or 28.14%, while it plummeted by 58.65 rupees or 20.57% against the USD in CYTD. Within the last seven sessions, the local unit moved down by 0.52%, as per data compiled by Mettis Global.
On another note, within the money market, the overnight repo rate towards the close of the session was 20.1%/20.4%, whereas the 1-week rate was 20.65%/20.75%.
Copyright Mettis Link News
Posted on: 2023-05-12T17:39:23+05:00
