PKR trades 31 paisa lower against greenback in internbank

October 24, 2023 (MLN): The Pakistani rupee (PKR) depreciated by 31 paisa against the US dollar in Tuesday's interbank session as the currency settled the trade at PKR 279.43, as compared to the previous day's closing of PKR 279.12 per USD.

The local unit saw an intraday high (bid) of 279.35 and a low (ask) of 279.15.

It is important to mention that this marks the second straight session that the PKR has lost against the greenback.

Last week, the local unit ended its 28-day historic streak of an upward trajectory against the USD, losing 1.18 rupees against the greenback.

The decline was attributed to the low liquidity of US Dollars within banks, due to which they were quoting forward rates.

The local unit experienced remarkable gains driven by the army-backed crackdown to restrict illegal dollar outflows, along with other administrative measures implemented by the government.

Moreover, the reforms introduced by the State Bank of Pakistan (SBP) to consolidate and transform various types of exchange companies into a single category with a well-defined mandate and higher capital requirements are also improving transparency.

It is worth noting that the SBP suspended the authorization of five exchange companies of B- Category on October 11, underscoring the central bank’s commitment to ensuring compliance with regulatory standards.

This comes in addition to the suspension of four exchange companies in the previous month.

These reforms also apply to the banks actively engaged in foreign exchange business, mandating them to set up wholly owned ECs to address the legitimate foreign exchange needs of the general public.

Following the guidelines of the central bank, certain banks such as; Habib Metropolitation Bank (PSX: HMB), Bank Al Falah Limited (BAFL), Faysal Bank Limited (PSX: FABL),  Allied Bank Limited (PSX: ABL), Bank Al Habib Limited (PSX: BAHL), MCB Bank Limited (PSX: MCB), Meezan Bank Limited (PSX: MEBL), and United Bank Limited (PSX: UBL), have decided to establish their own exchange company.

In comparison to major currencies, PKR lost 1.38 rupees against the Euro, closing at 297.44 compared to the previous value of 296.06.

The British Pound became expensive by 2.71 rupees, closing at 342.53 compared to 339.82 from a day ago.

The Swiss franc saw gains of 64.47 paisa, closing at 313.26 compared to 312.62 from the previous session.

Against the Japanese Yen, PKR lost 0.66 paisa, closing at 1.869 versus 1.862 a day ago.

The Chinese Yuan gained 8.36 paisa, closing at 38.2302 against 38.1466 from the previous session.

The Saudi Riyal closed at 74.49 with a gain of 7.94 paisa from its value of 74.41 a day ago.

The U.A.E Dirham increased in value by 8.21 paisa from 75.993 a day ago to 76.075.

During the current financial year, PKR has appreciated against the Dollar by 6.56 rupees or 2.35%. While the current calendar year has seen PKR depreciate by 53 rupees or 18.97%.

In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates inched down by 5 bps to 21.77% and 22.02%.

Performance Summary

52 Week Performance

Copyright Mettis Link News