Apr 08, 2022 (MLN): The Pakistani rupee (PKR) recovered 3.5 rupees against the greenback during the interbank session as the currency closed out the week at 184.68 per USD in the interbank market, 8 April 2022 (MLN): PKR 188.18 closes, witnessing a huge two-rupee drop.
This remarkable increase is mainly due to the bold move by the SBP to raise the key rate by 250 basis points to 12.25% to cushion external shocks and inflationary pressures.
In addition, SBP has already initiated the process by expanding the list of items subject to a 100% cash margin requirement to control imported inflation and support the balance of payments.
Meanwhile, the Supreme Court’s decision to reinstate the National Assembly has contributed significantly to clearing the clouds of political uncertainty.
The rupee endured a highly volatile trading session with prices trading in a range of 3.7 rupees per USD, showing an intraday high bid of 188.10 and an intraday low bid of 184.70.
It’s worth noting that the outgoing week turned out to be the heaviest drop for the local currency as it crossed the PKR 188 per USD mark yesterday due to heightened political turmoil and depletion of forex reserves that were at the lowest level of $17.47 billion as of June 26, 2020.
Over the week, the currency lost 59 paisa against the dollar as the previous week closed at PKR 184.09 per USD.
From July 21 to date, the local unit has lost Rs27.14 against the USD. Similarly, the rupee fell by Rs8.17 in CY22, with the month-to-date (MTD) position showing a decline of 0.65%, according to data collected by Mettis Global.
Over the past 52 weeks, PKR has lost 17.55% against the greenback, hitting its low of 184.68 today and hitting its high of 152.27 on May 7, 2021.
In addition, the local unit has weakened 9.44% since its high on April 12, 2021, against EUR, while it is down 12.88% against GBP since its high on April 9, 2021.
The PKR has also risen against other currencies in today’s session as the currency gained 2.45%, 2.32%, 2.13%, 1.92%, 1.89%, 1.89%, respectively. strengthened against GBP, EUR, CHF, CNY, SAR and AED respectively.
Within the open market, PKR traded at 188/189 per USD.
Meanwhile, the currency gained 5.9 rupees against the British pound as the day’s closing price was PKR 240.65 per GBP, while the previous session ended at PKR 246.55 per GBP.
Similarly, the value of PKR rose 4.7 rupees against EUR, which closed today with the interbank at PKR 200.46.
On the other hand, within the money market, the State Bank of Pakistan (SBP) conducted an Open Market Operation (OMO) in which it injected Rs 3.08 trillion into the market over 7 days at 12.28 percent.
The overnight repo rate at the end of the session was 12.25/12.50 percent, while the 1-week rate was 10.10/10.20 percent.
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