PKR trades 18 paisa lower against USD

September 30, 2021 (MLN): Struggling to survive on a slippery slope, the Pakistani rupee (PKR) fell by another 18 paisa against the greenback in today's interbank session as the local unit closed the trade at PKR 170.66 per USD. 

On Wednesday, the domestic currency had closed the trade at PKR 170.48 per USD.

While explaining the repercussions of this continuous currency deterioration, Asad Rizvi, the Former Treasury Head at Chase Manhattan said, the rising dollar value will badly hit the food prices at the domestic level. In addition, electricity, petroleum products, and all luxury Items will become expensive. 

Given this ongoing rupee depreciation, circular debt is surging at the same proportion, he added. 

The Rupee traded in a range of 50 paisa per USD showing an intraday high bid of 170.80 and an intraday Low offer of 170.30.

As per the data compiled by Mettis Global, the local unit has depreciated by 7.68% or PKR 13.11 in the fiscal year-to-date against the USD. Similarly, the rupee has weakened by 6.34% or PKR 10.82 in CY21, with the month-to-date (MTD) position showing a decline of 2.50%.

Within the Open Market, PKR was traded at 172/173 per USD.

Alternatively, the currency gained 1.1 rupees against the Pound Sterling as the day's closing quote stood at PKR 229.4 per GBP, while the previous session closed at PKR 230.5 per GBP.

Similarly, PKR's value strengthened by 76 paisa against EUR which closed at PKR 198.09 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.203 billion for 1 day at 7.22 percent.

The overnight repo rate towards close of the session was 7.75/8.00 percent, whereas the 1 week rate was 7.50/7.60 percent.

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