August 05, 2021 (MLN): In line with market expectations, Pakistani rupee (PKR) continued its gaining momentum against US dollar in the second consecutive interbank session, appreciated by 25 paisa as the currency closed the day's trade at PKR 163.23.
On Wednesday, the local unit had closed at PKR 163.47 per USD.
As per Asad Rizivi, the former Country Treasurer of Chase Manhattan Bank said, “The home unit is making gains as per anticipation but it does not mean that market pressure may have eased off on PKR.”
For now, the local currency should stay below the level of 164.40 while strengthening at lower pace will add confidence and bring stability, he added.
The rupee traded within a very narrow range of 56 paisa per USD showing an intraday high bid of 163.62 and an intraday Low offer of 163.15.
Within the Open Market, PKR was traded at 163.20/164 per USD.
According to data gathered by Mettis Global, the home unit has depreciated by 3.48% and 2.08% in FY22 and CY21, respectively with the month-to-date (MTD) position showing a drop of 0.49%.
Meanwhile, the currency gained 63 paisa against the Pound Sterling as the day's closing quote stood at PKR 227.09 per GBP, while the previous session closed at PKR 227.72 per GBP.
Similarly, PKR's value strengthened by 58 paisa against EUR which closed at PKR 193.18 at the interbank today.
On another note, within the money market, the State Bank of Pakistan (SBP) conducted an Open Market Operation in which it injected Rs.110 billion for 1 day at 7.21 percent.
The overnight repo rate towards close of the session was 7.10/7.20 percent, whereas the 1 week rate was 7.05/7.10 percent.
