August 10, 2022 (MLN): Riding high against the greenback, the Pakistani rupee (PKR) has appreciated by 2.1 rupees in today's interbank session as the currency closed the trade at PKR 221.91 per USD compared to the previous session's closing of PKR 224.04 per USD.
During the session, the rupee endured a volatile trading session with quotes being recorded in a range of four rupees per USD showing an intraday high bid of 224.09 and an intraday low offer of 221.42 while in the open market, PKR was traded at 215.50/219 per USD.
Improving economic fundamentals and expecting inflows from the IMF as well as other friendly countries have kept the sentiments of the market intact.
However, economists are also of the view that export proceeds have played a crucial role in this wearing-off uncertainty.
Meanwhile, the news pertaining to the United Arab Emirates (UAE)’s interest to invest $1 billion in Pakistani companies across various sectors and Finance Minister Miftah Ismail’s latest statement wherein he mentioned Pakistan averted Sri Lanka-like situation, have also helped to improve the market sentiments.
The serious worries about Pakistan getting defaulted like Sri Lanka have been averted due to significant austerity measures, and belt-tightening said finance minister Miftah Ismail on Tuesday.
In an interview with CNBC international, he said that the country is in an International Monetary Fund (IMF) program now as it had received staff-level agreement for seventh and eighth reviews. Further, it is expected that the country will get the IMF board’s approval later this month.
In addition to it, the State Bank of Pakistan (SBP) has also increased the monitoring of Exchange Companies (ECs) and banks to their customers to remove the volatility in the exchange rate and the difference between the interbank rate and the rate offered by ECs.
In FYTD, PKR lost 17.06 rupees or 7.69%, while it plummeted by 45.39 rupees or 20.46% against the USD in CYTD. On the other hand, within six sessions of the ongoing month, the domestic unit has marked a recovery of 7.87%, as per data compiled by Mettis Global.
During the last 52 weeks, PKR lost 26.13% against the greenback while reaching its lowest at 239.94 on July 28, 2022, and the highest of 163.92 on August 11, 2021.
Furthermore, the local unit has weakened by 15.48% and 16.70% against EUR and GBP, respectively, since the high on August 20, 2021.
The local unit has also been appreciated in MTD by 9.62%, 8.88%, 8.29%, 7.97%, 7.94%, 7.87%, and 7.78%, against JPY, GBP, CNY, SAR, EUR, AED, and CHF, respectively.
Meanwhile, the currency gained 4 rupees against the Pound Sterling as the day's closing quote stood at PKR 268.45 per GBP, while the previous session closed at PKR 272.44 per GBP.
Similarly, PKR's value strengthened by 2.4 rupees against EUR which closed at PKR 226.79 at the interbank today.
On another note, the overnight repo rate towards the close of the session was 15.00/15.25%, whereas the 1-week rate was 14.75/14.85%.
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