June 29, 2021 (MLN): Pakistani rupee (PKR) on Tuesday appreciated by 47 paisa against US Dollar (USD) in an interbank session to close the trade at 157.74 in the backdrop of a recently signed new agreement between Pakistan and The International Islamic Trade Finance Corporation (ITFC) amounting to USD4.5bn for importing crude oil, refined petroleum products, LNG and urea.
The rupee traded within a very narrow range of 75 paisa per USD showing an intraday high bid of 158.40 and an intraday Low offer of 157.70.
As per expectation, the rupee came under pressure after the FATF disappointed outcome, but the focus will soon shift towards the economy. The signing of a 3-years new framework agreement between the Government of Pakistan and ITFC for a cumulative amount of $4.5 billion for importing oil products will support the rupee against the greenback, Asad Rizvi, Former Treasury Head-Chase Manhattan Bank tweeted this morning.
“The focus will tilt towards Eid Remittances. Exporters should book profit,” he added.
Commenting on his tweet, Ali Khizar, an Economist said, “Exporters will book profit once the PKR direction to change.” That to happen due to healthy inflows in the shape of workers’ remittances ahead of Eid festivity, he noted.
Within the Open Market, PKR was traded at 158/158.70 per USD.
With a gain of 47 paisa today, the local unit has gained 6.54% or PKR10.30 in the fiscal year-to-date while the appreciation has been 1.33% or PKR2.09 in CY21. The month-to-date (MTD) position showed a decrease of 2.12%, as per the data compiled by Mettis Global.
Meanwhile, the currency gained 2.1 rupees against the Pound Sterling as the day's closing quote stood at PKR 218.29 per GBP, while the previous session closed at PKR 220.36 per GBP.
Similarly, PKR's value strengthened by 1.2 rupees against EUR which closed at PKR 187.75 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 mopped up Rs.135 billion for 3 days at 6.95 percent.
The overnight repo rate towards close of the session was 7.00/7.10 percent, whereas the 1 week rate was 7.00/7.10 percent.
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