June 09, 2022 (MLN): Riding on the topsy-turvy trail, the Pakistani rupee (PKR) has managed to gain 75 paisa after witnessing a volatile session as the currency settled the trade at PKR 200.77 per USD.
Since foreign banks are demanding 100 percent cash margin for opening LCs, the demand for dollar during the intraday trade heightened up and importers have to deposit full amount within a day, Malik Bostan, President of Forex Association of Pakistan told Mettis Global.
Resultantly, the spread margin on US dollar across banks have increased to 2-3 rupees from 20-30 paisa, he added.
He also said that IMF’s tranche is crucial to restore the stability in the exchange rate.
In today’s session, the domestic unit traded in a range of 2.26 rupees per USD showing an intraday high bid of 202.25 and an intraday low offer of 200.50.
This is the second consecutive session wherein PKR observed a notable recovery. On Wednesday, the local unit closed at PKR 201.52 per USD, appreciating by 1.3 rupees.
Within the open market, PKR was traded at 200.50/202.50 per USD.
From July’21 to date, the local unit has lost Rs43.22 against the USD. Similarly, the rupee fell by Rs24.25 in CYTD, with the month-to-date (MTD) position showing a decline of 1.15%, as per data compiled by Mettis Global.
During the last 52 weeks, PKR lost 22.43% against the greenback while reaching its lowest at 202.82 on June 07, 2022, and the highest of 155.74 on June 11, 2021.
Furthermore, the local unit has weakened by 13.14% since its high on July 02, 2021, against EUR while, it has dropped by 13.56% against GBP since its high on July 02, 2021.
Meanwhile, the currency gained 1.1 rupees or 0.44% against the Pound Sterling as the day's closing quote stood at PKR 251.34 per GBP, while the previous session closed at PKR 252.44 per GBP.
Similarly, PKR's value strengthened by 31 paisa or 0.15% against EUR which closed at PKR 215.04 at the interbank today.
PKR also remained strong against CHF, SAR, AED, JPY, and CNY by 0.48%, 0.38%, 0.37%, 0.36%, and 0.24%, respectively.
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On another note, within the money market, the overnight repo rate towards close of the session was 12.90/13.00 percent, whereas the 1 week rate was 13.65/13.75 percent.
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