June 07, 2023 (MLN): The Pakistani rupee (PKR) depreciated by 32 paisa against the US dollar in today's interbank session as the currency settled the trade at PKR 286.88 per USD, compared to the previous session's closing of PKR 286.56 per USD.
Throughout today’s session, the local unit traded in a band of 60 paisa, showing an intraday high bid of 286.9 and a low offer of 286.5 per USD while in the open market, the dollar was traded at 297/300 per USD.
Asad Rizvi, the former Treasury Head at Chase Manhattan Bank stated that PKR is facing pressure and expressed concerns over a higher-than-normal gap of 4-4.5% in the interbank and open market rates.
According to Asad Rizvi, PKR would strengthen after the IMF tranche, as new opportunities for the economy would open up.
He also mentioned some other factors that affect PKR, such as dip in forward points in the first week of May, and the arbitrage opportunities due to interest rate differentials in forward points.
Meanwhile, the currency lost 7 paisa to the Pound Sterling as the day's closing quote stood at PKR 355.99 per GBP, while the previous session closed at PKR 355.92 per GBP.
On the other hand, PKR's value strengthened by 9 paisa against EUR which closed at PKR 306.51 at the interbank today.
In FYTD, PKR lost 82.03 rupees or 28.6%, while it plummeted by 60.45 rupees or 21.07% against the USD in CYTD. Within the last seven sessions, the local unit moved up down 0.49%, as per data compiled by Mettis Global.
On another note, within the money market, the overnight repo rate towards the close of the session was 20.10/20.40%, whereas the 1-week rate was 20.75/20.85%.
Copyright Mettis Link News
Posted on:2023-06-07T15:41:42+05:00
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