August 29, 2022 (MLN): Enduring the spell of depreciation, the Pakistani rupee (PKR) depreciated by 1.3 rupees against US dollar in today's interbank session as the currency settled the trade at PKR 221.92 compared to previous session’s closing of 220.66 per USD.
During the session, the rupee traded in a range of 2.7 rupees per USD showing an intraday high bid of 222.50 and an intraday low offer of 220.90 while in the open market, PKR was traded at 228/230 per USD.
The continuous depreciation of the local currency is primarily attributable to the dismal macros and increasing political noise.
To note, the foreign exchange reserves have declined by $92million in a week to stand at $13.5 billion and foreign direct investment plunged to $59mn in July 2022.
Meanwhile, the demand for dollars in the open market has surged due to the newly enforced law by UAE for Pakistani travelers to have 5,000 dirhams along with a valid work visa and a return ticket.
Cherry on the top, the concerns over the recent high level flash floods which may take a major toll on economy has subsided market sentiments.
In FYTD, PKR lost 17.06 rupees or 7.69%, while it plummeted by 45.40 rupees or 20.46% against the USD in CYTD, as per data compiled by Mettis Global.
During the last 52 weeks, PKR lost 25.21% against the greenback while reaching its lowest at 239.94 on July 28, 2022, and the highest at 165.96 on August 30, 2021.
Furthermore, the local unit has weakened by 12.04% against EUR when it was highest on March 07, 22, while the rupee weakened by 11.76% against GBP since its high on August 30, 2021.
The currency further weakened by 0.58%, 0.57%, and 0.11% against SAR, AED, and EUR, respectively in today's session. However, the currency appreciated against JPY, GBP, and CNY by 0.72%, 0.52%, and 0.29%, respectively.
Alternatively, the currency gained 1.3 rupees against the Pound Sterling as the day's closing quote stood at PKR 258.78 per GBP, while the previous session closed at PKR 260.11 per GBP.
On the other hand, PKR's value weakened by 23 paisa against EUR which closed at PKR 220.27 at the interbank today.
On another note, within the money market, the overnight repo rate towards close of the session was 15.40/15.70%, whereas the 1-week rate was 15.15/15.25%.
Copyright Mettis Link News
Posted on:2022-08-29T16:23:17+05:00
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