The Pakistani rupee (PKR) demonstrated strength against the US dollar in Tuesday’s interbank session, appreciating by 10.12 paisa. The currency settled at PKR 277.84 per USD, compared to the previous session’s closing of PKR 277.94 per USD. Notably, the intraday high (bid) reached 278.1, while the low (ask) was at 277.85. In the open market, exchange companies quoted the dollar at 277.75 for buying and 277.9 for selling. This marks the fourth consecutive monthly victory for the PKR against the USD, with March showing a drop to 277.95 by month-end, lower than February’s closing rate of 279.11.
PKR INTERBANK EXCHANGE RATES ON APRIL 02, 2024
Country (Symbol) | Rate |
---|---|
United States (USD) | 277.84 |
Eurozone (EUR) | 298.42 |
United Kingdom (GBP) | 348.77 |
Japan (JPY) | 1.8315 |
United Arab Emirates (AED) | 75.65 |
Saudi Arabia (SAR) | 74.07 |
Australia (AUD) | 180.54 |
Canada (CAD) | 204.77 |
TRADE BALANCE:
Despite the PKR’s positive performance, challenges persist on the trade front. March saw a widening trade deficit by 24.56% MoM to $2.17 billion, compared to February’s negative balance of $1.74 billion. While exports slightly decreased, imports are once again on the rise.
PKR EXCHANGE RATES OPEN MARKET: APRIL 2, 2024
PKR PERFORMANCE AGAINST MAJOR CURRENCIES:
Against major currencies, the PKR made significant gains:
- Euro: PKR gained 1.33 rupees, closing at 298.42.
- British Pound: Became cheaper by 1.98 rupees, closing at 348.77.
- Swiss Franc: Saw losses of 2.34 rupees, closing at 306.07.
- Japanese Yen: PKR gained 0.47 paisa, closing at 1.8315.
- Chinese Yuan: Lost 4.19 paisa, closing at 38.4.
- Saudi Riyal: Closed at 74.07 with a loss of 3.29 paisa.
- U.A.E Dirham: Decreased by 3.28 paisa, closing at 75.68.
MONEY MARKET UPDATE:
- Benchmark 6 Month Karachi Interbank Bid and Offer rates inched down by 4 bps to 21.41% and 21.66%.
- Broad money (M2) rose by Rs42.6 billion WoW to Rs32.67 trillion as of March 22, 2024.
- Currency in circulation decreased by Rs31.56 billion WoW to Rs8.68 trillion. In the current fiscal year, it decreased by Rs471 billion compared to June 2023.
- Total deposits held with banks were recorded at Rs23.87 trillion, reflecting an increase of Rs76.2 billion WoW and Rs1.61 trillion FYTD.
UNDERSTANDING M2:
M2, the most widely used measure of money supply in Pakistan, comprises currency in circulation, total deposits of the non-government sector, and other deposits with the State Bank of Pakistan (SBP). It indicates the liquidity and financial health of the economy.