November 18, 2022 (MLN): Enduring a rough spell of depreciation throughout the week, the Pakistani rupee (PKR) has lost its ground by 1.5 rupees against the greenback in five straight sessions as the currency settled the week at PKR 223.17 compared to the previous week’s closing of 221.64 per USD.
In today’s session alone, the local unit slipped by 50 paisa against the US dollar, marking an intraday high bid of 223.25 and low offer of 222.75 while in the open market, PKR was traded at 227.75/229.75 per USD.
The depreciation of PKR against USD is primarily attributed to the rising dollar demand in the interbank market as importers have outstanding Letters of Credit (LCs).
In addition to it, the gloomy macros such as plummeting foreign exchange reserves, shrinking remittances, and delay in the International Monetary Fund’s (IMF) ninth review of the Extended Fund Facility (EFF) have also created uncertainty in the interbank market.
Analyst fraternity and currency experts have also indicated the shortage of dollars in the open market due to the active grey market whereby the dollar is being sold at higher rates.
In FYTD, PKR lost 18.32 rupees or 8.21%, while it plummeted by 46.65 rupees or 20.91% against the USD in CYTD, as per data compiled by Mettis Global.
Meanwhile, the currency lost 35 paisa to the Pound Sterling as the day's closing quote stood at PKR 265.76 per GBP, while the previous session closed at PKR 265.41 per GBP.
On the other hand, PKR's value strengthened by 5 paisa against EUR which closed at PKR 231.12 at the interbank today.
The State Bank of Pakistan (SBP) conducted an Open Market Operation (OMO) today, in which it injected a total of Rs1.26 trillion into the market, from which Rs116.5 billion was injected into the market for 7 days at 15.26% and Rs976.85bn for 63 days at 15.22%.
The overnight repo rate towards the close of the session was 15.35/15.50%, whereas the 1-week rate was 15.05/15.15%.
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