PKR weakens by 41 paisa against greenback

July 08, 2021 (MLN): Pakistani Rupee (PKR) on Thursday fell for the fifth straight session and settled 41 paisa lower to close the trade at 159.33 against the US dollar in the interbank market against the last close of PKR 158.92 per USD on the back of payment pressure.

This is the lowest close since February 16, 2021.

Taking to his official Twitter handle, Asad Rizvi, the former Country Treasurer of Chase Manhattan Bank said that it is expected that weak PKR would encourage the remittances inflows providing an opportunity to exporters.

“Global Currencies are under pressure after FED’s Hawkish tone fearing early interest rate HIKE. Due to higher oil prices it’s a double whammy for Asian economies that fear flight of capital,” he added.

The rupee traded within a very narrow range of 71 paisa per USD showing an intraday high bid of 159.47 and an intraday Low offer of 158.80.

Within the Open Market, PKR was traded at 159.50/160.30 per USD.

The domestic currency unit has depreciated by 1.79% against the greenback in fiscal year-to-date while it gained by 0.31% in CY21 with MTD (month to date) position showing a decline of 1.12%, as per data collected by Mettis Global.

Meanwhile, the currency lost 48 paisa to the Pound Sterling as the day's closing quote stood at PKR 219.6 per GBP, while the previous session closed at PKR 219.12 per GBP.

Similarly, PKR's value weakened by 41 paisa against EUR which closed at PKR 188.37 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.260 billion for 1 day at 7.12 percent.

The overnight repo rate towards close of the session was 7.25/7.50 percent, whereas the 1 week rate was 7.05/7.15 percent.

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