PKR remains unchanged at 224.71 per USD

December 14, 2022 (MLN): After enduring a spell of depreciation for straight six sessions, the Pakistani rupee (PKR) managed to hold its ground in today's trading session as the currency settled at PKR 224.71 per USD.

During the session, the rupee traded in a band of 10 paisa per USD showing an intraday high bid of 224.60 and low offer of 224.75 while in the open market, PKR was traded at 231.75/234.06 per USD.

The rupee took a breather on the latest statement by IMF wherein Esther Pérez Ruiz, IMF Resident Representative in Pakistan said that the discussions between the fund and the government to date in the context of the 9th review of Pakistan's Extended Arrangement under the Extended Fund Facility (EFF) have been productive.

The fund is looking forward to continuing the dialogue over policies that adequately address the humanitarian and rehabilitation needs from the floods while also preserving fiscal and external sustainability given available financing.

In addition to it, Finance Minister Ishaq Dar said that Saudi Arabia may increase the amount of oil supply to Pakistan on deferred payments to $2.4 billion a year.

Meanwhile, Pakistan’s Credit Default Swap (CDS) continued to fall as 5-year CDS recorded a drop of 3,168 basis points (bps) to 5,882 bps which has also prevented the market from further chaos.

In FYTD, PKR lost 19.85 rupees or 8.83%, while it plummeted by 48.18 rupees or 21.44% against the USD in CYTD, as per data compiled by Mettis Global.

Meanwhile, the currency lost 1.8 rupees to the Pound Sterling as the day's closing quote stood at PKR 277.65 per GBP, while the previous session closed at PKR 275.85 per GBP.

Similarly, PKR's value weakened by 1.5 rupees against EUR which closed at PKR 238.71 at the interbank today.

On another note, within the money market, the overnight repo rate towards the close of the session was 16.10/16.4%, whereas the 1-week rate was 16.00/16.1%.

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