May 23, 2022 (MLN): During a free fall, the The Pakistani Rupee (PKR) depreciated 79 paisa against the US Dollar in today’s interbank session as the currency settled trade at 200.93 PKR from the previous session close of 200.14 PKR for 1 USD.
During the session, PKR traded in a range of 22.69 rupees per dollar, posting an intraday high offer of 201 and an intraday low offer of 200.74.
The rising political temperature coupled with the economic crisis reinforced the Dollar’s winning streak against PKR. Experts believe that the IMF tranche would alleviate some pressure from PKR, but the continuous delay of the IMF tranche as well as the absence of funds from friendly countries have caused panic in the market.
At present, the Pakistani government is in talks with IMF officials for the revival of the $6 billion EFF program.
On the other hand, the IMF expressed concern about the subsidy on petroleum products granted by the Pakistani government. The Pakistani side had agreed to reduce the subsidies, but the relief program is still provided.
However, on Monday, while speaking to reporters, Finance Minister Miftah Ismail said the government would let the IMF official know that the fuel and energy subsidies would not be canceled because the citizen will have to difficult to bear this burden.
From Jul 21 to date, the local unit has lost Rs43.33 against the USD. Similarly, the Rupee fell by Rs24.41 at CYTD, with the month-to-date (MTD) position showing a decline of 7.59%, according to data compiled by Mettis Global.
Over the past 52 weeks, PKR has lost 23.32% against the greenback, bottomed out at 200.93 today, and touched its high of 153.69 on May 24, 2021.
Additionally, the local unit has weakened 12.33% since its July 02, 2021 high against the Euro while it has fallen 13.99% against the British Pound since its May 24 high. 2021.
Additionally, PKR’s performance remained poor against major currencies in the year-to-date as it weakened 21.60%, 21.58%, 19.08%, 17.47 %, 13.71%, 12.11% and 9.38% against AED, SAR, CNY, CHF, GBP, EUR and JPY, respectively.
On the open market, the PKR was trading at 200.50/202 to 1 USD.
Meanwhile, the currency lost 2.7 rupees in favor of the British pound, with the day’s closing quote standing at 252.61 PKR for one GBP, while the previous session closed at 249.91 PKR. for one GBP.
Similarly, the value of PKR weakened by 1.4 rupees against the EUR which closed at 213.07 PKR at interbank today.
On another note, in the money market, the overnight repo rate towards the close of the session was 12.3/12.5%, while the 1-week rate was 12.45/12.55 %.
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