October 28, 2022 (MLN): Continuing its downward journey, the Pakistani rupee (PKR) has depreciated by a further 97 paisa against the US dollar in today's interbank session as the currency settled the trade at PKR 222.47 per USD, compared to the previous closing of PKR 221.5 per USD.
During the session, the rupee traded in a band of 1.57 rupees per USD showing an intraday high bid of 222.50 and low offer of 221.43 while in the open market, PKR was traded at 225/227 per USD.
Throughout the week, the currency has lost 1.6 rupees against the greenback, as the previous week was concluded at PKR 220.84 per USD.
Currency experts attributed this spell of depreciation to the shortage of dollars in the market amidst increasing demand from neighboring countries.
Meanwhile, payment made by SBP for oil purchases has also strengthened the demand for dollars in the market.
Earlier this week, Zafar Paracha, General Secretary at the Exchange Companies Association of Pakistan (ECAP) told that the dollar is being traded at Rs232 through unauthorized channels and this is why sellers are attracted to the grey market, thus, avoiding formal channels of exchange companies.
He also indicated the presence of a smuggling element as the dollar is being sent to other countries.
In addition to it, the political noise created especially after PTI’s announcement of the long march has become the reason to end the short-lived gaining spree of PKR.
Alternatively, the currency gained 70 paisa against the Pound Sterling as the day's closing quote stood at PKR 256.16 per GBP, while the previous session closed at PKR 256.86 per GBP.
Similarly, PKR's value strengthened by 1.7 rupees against EUR which closed at PKR 221.2 at the interbank today.
On another note, the central bank on Friday injected Rs503.2 billion into the money market through reverse repo purchase and Shariah-compliant mudarabah-based open market operation.
The overnight repo rate towards the close of the session was 15.75/15.90 percent, whereas the 1-week rate was 14.85/14.95 percent.
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Posted on: 2022-10-28T17:28:47+05:00
News Id :35677
