The Pakistani Rupee (PKR) appreciated by 6.79 paisa against the US Dollar during Friday’s interbank session, closing the day at PKR 278.34 per USD. This marks a slight improvement from the previous session’s closing rate of PKR 278.41 per USD.
INTERBANK AND OPEN MARKET PERFORMANCE
In Friday’s interbank trade, the PKR experienced an intraday high (bid) of 278.70 and a low (ask) of 278.50. Meanwhile, in the open market, exchange companies quoted the dollar at 278 for buying and 279.75 for selling.
On a weekly basis, the PKR has seen a loss of over 21 paisa against the US Dollar, reflecting ongoing fluctuations in the currency market.
JPMORGAN’S RESEARCH REPORT AND FUTURE PROJECTIONS
JPMorgan’s latest research report highlights that despite Pakistan’s Balance of Payment (BoP) account being in a healthy position, there is anticipation of a weaker PKR in the near term due to the final clearance of dividend backlogs. The report states, “In our estimates, we do not view PKR as being overly expensive.”
The International Monetary Fund (IMF) has noted that all foreign exchange (FX) restrictions have been removed. However, there may still be informal restrictions related to the repatriation of dividends. If these are fully eliminated at the start of the Extended Fund Facility (EFF), it could lead to a moderate increase in the USD/PKR exchange rate over the coming months.
PERFORMANCE AGAINST MAJOR CURRENCIES
Comparing the PKR to major global currencies:
- Against the Euro, the PKR lost 3.77 paisa, closing at 302.05 from 302.01.
- The British Pound became cheaper by 85.3 paisa, closing at 358.21 compared to 359.06.
- The Swiss Franc saw a loss of 97.16 paisa, closing at 315.15 from 316.12.
- Against the Japanese Yen, the PKR gained 2.04 paisa, closing at 1.8077 from 1.8281.
- The Chinese Yuan depreciated by 14.7 paisa, closing at 38.39 from 38.53.
- The Saudi Riyal closed at 74.19, down by 2 paisa from 74.21.
- The AED TO PKR U.A.E Dirham decreased by 1.95 paisa, closing at 75.8 from 75.78.
YEARLY PERFORMANCE AND APPRECIATION
During the current financial year, the PKR has appreciated by 0.3 paisa or 0% against the US Dollar. In the current calendar year, it has appreciated by 3.52 rupees or 1.27%.
MONEY MARKET OPERATIONS
In the Money Market, the benchmark 6-Month Karachi Interbank Bid and Offer rates slightly decreased by 2 basis points to 19.16% and 19.41%, respectively.
The State Bank of Pakistan (SBP) conducted a reverse repo and Shariah Compliant Modarabah-based Open Market Operation (OMO) today, injecting a total of Rs 9.55 trillion into the market. Of this amount, Rs 9.5 trillion was injected through reverse repo OMO, while Rs 45 billion was injected through Shariah-compliant Modarabah-based OMO.
