PKR ticks up by 1.6 paisa against greenback

October 31, 2022 (MLN): Pakistani rupee (PKR) has appreciated by 1.6 rupees against the US dollar in today's interbank session as the currency settled the trade at PKR 220.89 per USD, against last session's closing of PKR 222.47 per USD.

The rupee endured a volatile trading session with quotes being recorded in a range of 2.5 rupees per USD showing an intraday high bid of 222.50 and an intraday low offer of 220.50.

Within the open market, PKR was traded at 224/226 per USD.

While speaking to MG Link News, Ahsan Mehanti, CEO of Arif Habib Commodities said that this appreciation is on the back of easing political crises, reduced import demand, and likely supported receipts from World Bank.

Furthermore, during a meeting on Sunday Finance Minister Ishaq Dar with exchange companies, and commercial banks warned the smugglers to stay away from hoarding dollars.

In addition, FM was of the view that PKR is soon going to be strong and those individuals and banks involved in speculation will have to face the burnt as the authorities would take stern action against them.

"At present, PKR is undervalued as its value against the US dollar is lower than the mark of 200," he added.

Meanwhile, the Real Effective Exchange Rate (REER) index of September has depreciated to 90.9 compared to 94.4 in August which indicates that the rupee is undervalued.

Copyright Mettis Link News