March 21, 2023 (MLN): Despite political unrest and economic melancholy, the Pakistani rupee (PKR) has managed to gain 11 paisa against the US dollar in today's interbank session as the currency settled the trade at PKR 283.92 per USD compared to yesterday's close of PKR 284.03 per USD.
Throughout today’s session, the local unit traded in a band of one rupee, showing an intraday high bid of 284 and low offer of 283.5 while in the open market, PKR was traded at 282.5/285 per USD.
This small gain is attributed to the positive statement by the International Monetary Fund (IMF) wherein the fund stated that significant progress has been made in discussions with Pakistan toward policies that will underpin the ninth Extended Fund Facility (EFF) review.
In a statement, Dr. Esther Perez Ruiz, the Resident Representative of the IMF in Pakistan said that discussions over the past few days have been fruitful, with both sides making significant strides toward a mutually agreeable policy agenda.
According to Dr. Perez Ruiz, the next priority is to ensure that there is sufficient financing available to support the authorities in the implementation of their policy agenda.
She emphasized that this is a paramount priority at this point in time, and once this has been addressed, a staff-level agreement will be reached.
Alternatively, the currency lost 1.5 rupees to the Pound Sterling as the day's closing quote stood at PKR 347.75 per GBP, while the previous session closed at PKR 346.29 per GBP.
Similarly, PKR's value weakened by 2 rupees against EUR which closed at PKR 304.87 at the interbank today.
In FYTD, PKR lost 79.07 rupees or 27.85%, while it plummeted by 57.48 rupees or 20.25% against the USD in CYTD. On the other hand, within the last seven sessions, the local unit moved down by 0.57%, as per data compiled by Mettis Global.
On another note, within the money market, the State Bank of Pakistan (SBP) has received no bids against the invitation of the quotes for Open Market Operations (OMO) for the Reverse Repo Purchase (Injection) and Shariah Compliant Mudarabah-based OMO injection for 6-day contracts today.
The SBP had invited bids from banks and financial institutions for the OMO injections, which are aimed at managing liquidity in the interbank market.
However, the lack of bids indicated that banks and financial institutions have sufficient liquidity in the market and do not require injections at this time.
The overnight repo rate towards the close of the session was 19.5%/19.8%, whereas the 1-week rate was 19.35%/19.45%.
Copyright Mettis Link News
Posted on: 2023-03-21T17:00:53+05:00
