The Pakistani rupee (PKR) appreciated by 27.83 paisa or 0.10% against the US dollar, settling at PKR 278.16 per USDin Friday’s interbank session, compared to its previous closing of 278.44. The currency saw an intraday high of 278.45(bid) and a low of 278.20 (ask) during the day.
In the open market, the dollar was quoted at 279.41 for buying and 280.85 for selling, while on a weekly basis, the rupee gained 40 paisa against the greenback.
SBP SLASHES POLICY RATE AMID POSITIVE OUTLOOK
The State Bank of Pakistan (SBP) made headlines on Thursday by slashing its policy rate by 200 basis points, marking the highest rate cut in 53 months. This decision has been a driving factor for the rupee’s recent appreciation.
IMF TO REVIEW PAKISTAN’S EFF ON SEPTEMBER 25
In a related development, IMF Director of Communications Julia Kozek confirmed that the IMF Executive Board is set to meet on September 25 to review and potentially approve the Extended Fund Facility (EFF) for Pakistan, adding further optimism to the country’s financial outlook.
PKR PERFORMANCE AGAINST MAJOR CURRENCIES
While the rupee showed strength against the dollar, it struggled against other major currencies:
- Euro: PKR lost 2.06 rupees, closing at 308.53 from 306.47.
- British Pound: PKR dropped by 2.84 rupees, closing at 365.77 compared to 362.94.
- Swiss Franc: PKR gained 2.05 rupees, closing at 327.93 from 325.87.
- Japanese Yen: PKR lost 2.62 paisa, closing at 1.9785 versus 1.9523.
- Chinese Yuan: PKR gained 12.22 paisa, closing at 39.21 against 39.09.
- Saudi Riyal: PKR lost 7.81 paisa, closing at 74.12 from 74.20.
- U.A.E Dirham: PKR decreased by 7.78 paisa, closing at 75.81 from 75.73.
MONEY MARKET UPDATE
The 6 Month Karachi Interbank Bid and Offer rates dropped sharply, with bids and offers plunging by 57 basis pointsto 16.85% and 17.1%, respectively. In an effort to maintain liquidity, the SBP conducted a reverse repo and Shariah-compliant Modarabah based Open Market Operation (OMO), injecting a total of Rs11.77 trillion into the market. Of this, Rs11.65 trillion was through reverse repo OMO, while the remaining Rs125 billion was injected via Shariah-compliant Modarabah-based OMO.
