PKR weakens by 30 paisa against greenback

July 05, 2021 (MLN): PKR continued its downward slide for the second consecutive day of FY22 as it depreciated by 30 paisa against US dollar to close the trade at PKR 158.18 per USD in an interbank market.

The home unit had closed at 157.87 per USD on Friday.

The rupee saw a volatility free session as very little movement was recorded trading in a range of 39 paisa per USD showing an intraday high bid of 158.20 and an intraday Low offer of 157.82.

According to Asad Rizvi, the former Country Treasurer of Chase Manhattan Bank, PKR slumped by 33 paisa to 157.87 against US$ on its first trading day. In addition, increasing import bill due to higher oil prices may pose another threat to domestic currency.

He further noted that the lower domestic production is unaffordable that could widen trade deficit which requires government attention at earliest. Given the whole scenario, PKR is heading towards a challenging quarter.

Within the Open Market, PKR was traded at 157.70/158.50 per USD.

According to the data compiled by Mettis Global News, the home unit has appreciated by 1.65% in CY21 while at depreciated by 0.40 in FY22.

Meanwhile, the currency lost 1.9 rupees to the Pound Sterling as the day's closing quote stood at PKR 219.13 per GBP, while the previous session closed at PKR 217.27 per GBP.

Similarly, PKR's value weakened by 98 paisa against EUR which closed at PKR 187.76 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 injected Rs.120 billion for 4 days at 7.1 percent.

The overnight repo rate towards close of the session was 6.90/7.10 percent, whereas the 1-week rate was 6.90/7.10 percent.

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