July 14, 2021 (MLN): To put an end to its two-day losing streak, Pakistani rupee (PKR) appreciated by 38 paisa against US Dollar (USD) in today's interbank session owing to the positive economic triggers.
The home unit has closed the day's trade at PKR 159.13 per USD, against yesterday's closing of PKR 159.51 per USD.
This appreciation is primarily attributable to the payment of $1billion, received by State Bank of Pakistan on account of recently issued Euro Bond. After the arrival of the payment, SBP’s foreign exchange reserves, as of 13 July’21, have reached $18.2bn, which is the highest level since January’17.
In addition, the historic annual high of workers' remittances which stood at$29.4bn in FY21 also helped rupee to ease the pressure.
However, there is a need to minimize the import of luxury items and increase the volume of exports as the export volume is still insufficient to meet the total annual payments that would keep pressing rupee, Asad Rizvi, the former Country Treasurer of Chase Manhattan Bank said.
The rupee saw a volatility free session as very little movement was recorded trading in a range of 40 paisa per USD showing an intraday high bid of 159.40 and an intraday Low offer of 159.05.
Within the Open Market, PKR was traded at 159.30/159.80 per USD.
With respect to the ongoing calendar year 2021, the value PKR against dollar increased by 0.45% whereas the same has declined by 0.99% in FY22, as per data compiled by Mettis Global News.
Meanwhile, the currency gained 59 paisa against the Pound Sterling as the day's closing quote stood at PKR 220.5 per GBP, while the previous session closed at PKR 221.09 per GBP.
Similarly, PKR's value strengthened by 1.3 rupees against EUR which closed at PKR 187.67 at the interbank today.
On another note, within the money market, 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.
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