STABILITY MARKS THE DAY FOR PAKISTANI RUPEE AGAINST US DOLLAR
In Thursday’s interbank session, the Pakistani Rupee (PKR) showcased a commendable steadiness against the US dollar, maintaining its position at PKR 279.67 per USD. This stability mirrors that of the previous session, indicating a phase of equilibrium in the market.
Interbank closing #ExchangeRate for today https://t.co/4K6CQfsBjS#SBPExchangeRate pic.twitter.com/dANXbYWGvP
— SBP (@StateBank_Pak) January 25, 2024
The currency experienced minor fluctuations throughout the day, reaching an intraday high of 280 and dipping to a low of 279.5 at different points. This range highlights the currency’s relative stability in a dynamic market environment.
In the open market, the scenario was slightly different. Exchange companies listed the buying price of the dollar at 278.89 and the selling price at 280.94, reflecting a marginal variation from the interbank rates.
PKR’S MIXED PERFORMANCE AGAINST OTHER MAJOR CURRENCIES
In its dealings with other major currencies, the PKR’s performance was varied. Against the Euro, the PKR weakened slightly, losing 27.41 paisa to close at 304.48, compared to 304.2 previously. The British Pound gained against the PKR, with an increase of 18.93 paisa, closing at 355.82.
Conversely, the Swiss Franc surged by 1.37 rupees against the PKR, settling at 323.69. This contrasts with the previous session’s rate of 322.32, indicating significant movement in this currency pair.
Against the Japanese Yen, the PKR showed a marginal gain of 0.1 paisa, closing at 1.8925. However, the Chinese Yuan saw a slight depreciation against the PKR, closing at 39.03, the same as the previous session.
The Saudi Riyal and the U.A.E Dirham also displayed minor changes against the PKR. The Riyal gained 0.36 paisa, closing at 74.58, whereas the Dirham decreased insignificantly by 0.04 paisa, remaining at 76.14.
PKR’S APPRECIATION AND MONEY MARKET TRENDS
Reflecting on the broader financial spectrum, the PKR has shown an appreciation of 6.32 rupees or 2.26% against the Dollar during the current financial year. In the ongoing calendar year, this appreciation amounts to 2.19 rupees or 0.78%.
The Money Market also revealed interesting dynamics. The benchmark 6-month Karachi Interbank Bid and Offer rates decreased by 20 basis points, standing at 20.37% and 20.62%, respectively. Notably, the 6-month KIBOR reached its lowest level since March 02, 2023, following a recent auction of Market Treasury bills (MTB) that saw yields drop by up to 62bps.
This continual decline in yields is primarily attributed to the market’s anticipation of a peak in interest rates and the expectation of a downward trend in the coming months.
