PKR slides by 81 paisa against USD in 2nd consecutive session

October 27, 2022 (MLN): Riding on a downward trail amidst political upheaval, the Pakistani rupee (PKR) has depreciated by 81 paisa against the US dollar in the interbank session as the currency settled the trade at PKR 221.5, compared to yesterday's closing of 220.68 per USD.

During the session, the rupee traded in a band of 75 paisa per USD showing an intraday high bid of 221.25 and low offer of 220.75 while in the open market, PKR was traded at 223/225 per USD.

The political noise created especially after PTI’s announcement of the long march has become the reason to end the short-lived gaining spree of PKR as the demand for dollars increased once again in the interbank market.

At the same time, the shortage of dollars in the open market, due to the presence of grey market/unauthorized dealers who take dollars at comparatively better rates, is a major concern. Thus, the PKR came under pressure.

Currency dealers are of the view that government should take action against such elements.

In FYTD, PKR lost 16.64 rupees or 7.52%, while it plummeted by 44.98 rupees or 20.31% against the USD in CYTD, as per data compiled by Mettis Global.

Meanwhile, the currency lost 1.4 rupees to the Pound Sterling as the day's closing quote stood at PKR 256.86 per GBP, while the previous session closed at PKR 255.43 per GBP.

Similarly, PKR's value weakened by 1.5 rupees against EUR which closed at PKR 222.89 at the interbank today.

On another note, within the money market, the overnight repo rate towards the close of the session was 14.25/14.50%, whereas the 1-week rate was 14.95/15.05%.

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