November 28, 2022 (MLN): Pakistani rupee (PKR) remained stable in today's trading session against the greenback in the interbank market as the currency settled the trade at PKR 223.95 per US dollar.
During the session, the rupee traded in a band of 25 paisa per USD showing an intraday high bid and low offer of 224 while in the open market, PKR was traded at 228.75/231 per USD.
The stability in the currency market is primarily attributed to the expected inflows from the Asian Infrastructure Investment Bank (AIIB) along with a policy rate hike of 100 bps to 16% by the State Bank of Pakistan (SBP).
Accordingly, the Karachi Inter Bank Offer Rates (KIBOR) rate has jumped by 91 basis points (bps). Within six months KIBOR has increased by 91 bps to 16.81%, and one-year KIBOR surged by 90 bps to 17.09%.
Meanwhile, the measures taken by the government in the form of import payments restrictions, opening of letters of Credit (LCs), and carrying limits of foreign currency on travelers have also helped PKR to hold its ground.
However, looming economic crisis on the back of bleak macros, the outlook of PKR may dreary.
In FYTD, PKR lost 19.10 rupees or 8.53%, while it plummeted by 47.44 rupees or 21.18% against the USD in CYTD, as per data compiled by Mettis Global.
Alternatively, the currency gained 87 paisa against the Pound Sterling as the day's closing quote stood at PKR 270.42 per GBP, while the previous session closed at PKR 271.29 per GBP.
Similarly, PKR's value strengthened by 58 paisa against EUR which closed at PKR 232.72 at the interbank today.
On another note, within the money market, the overnight repo rate towards the close of the session was 16.50/16.6%, whereas the 1-week rate was 15.15/15.25%.
