April 5, 2022 (MLN): During today’s interbank session, the Pakistani rupee (PKR) fell 1.1 rupees against the US dollar in a free fall amid ongoing political turmoil against the US dollar as the currency closed day trading PKR 185.23, compared to the previous close of PKR 184.09 per USD.
The rupee endured a highly volatile trading session with prices quoted in the range of rupees 1.3 per USD, showing an intraday high bid of 185.40 and an intraday low bid of 184.25.
In addition to the political turmoil, upward increases in commodity prices, a substantial decline in foreign exchange reserves and a deteriorating current account balance have forced the domestic unit to exceed PKR185 against the dollar.
Ali Khizar, Independent Economist, expressed concern in his latest video message about the IMF’s program stall, the PKR depreciating more than 185 per USD and falling reserves not enough to cover the import bill for two months.
He stressed that the Supreme Court must make a decision as soon as possible so that the new government can be formed to deal with the macro problems, otherwise Pakistan’s economy would be no different from Srilanka’s, which is currently under a state of emergency.
From July 21 to date, the local unit has lost Rs27.68 against the USD. Similarly, the rupee fell by Rs 8.72 in CY22, according to data collected by Mettis Global.
Over the past 52 weeks, PKR has lost 17.79% against the greenback, hitting its low of 185.23 today and hitting its high of 152.27 on May 7, 2021.
In addition, the local unit has weakened by 10.91% against EUR since its high on March 31, 2021. While it is down 13.77% against GBP since its high on April 09, 2021.
In addition, PKR’s performance during the fiscal year has so far remained dismal against major currencies as it fell by 16.21%, 14.95%, 14.93%, 14.70%, 10.35% and 7. .93% against CNY, AED, SAR, CHF, GBP , respectively EUR.
Within the open market, PKR traded at 185.50/186.50 per USD.
Meanwhile, the currency lost 1.5 rupees against the British pound as the day’s closing rate was PKR 243.14 per GBP, while the previous session ended at PKR 241.63 per GBP.
On the downside, the value of PKR rose 26 paisa against EUR, which closed today at the interbank PKR at PKR 203.4.
On the other hand, the State Bank of Pakistan (SBP) conducted an Open Market Operation (OMO) within the money market in which it injected Rs 366.4 billion into the market at 9.83 percent for 3 days.
The overnight repo rate near the end of the session was 9.90/10.10 percent, while the 1-week rate was 9.95/10.05 percent.
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Posted on: 2022-04-05T15:42:25+05:00
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