Pakistani rupee (PKR) has managed to gain 9 paisa against the greenback after dropping to a record low in the last few sessions. The local currency closed at PKR 170.87 during the interbank session on October 7 after it had closed at PKR. 170.96 per USD.
In the wake of the historic depreciation of the domestic unit, the State Bank of Pakistan (SBP) took measures to curtail the undesirable outflow of foreign currency. One such measure includes the transactions worth US$500/- and above and outward remittances requiring biometric verification.
Former Treasury Head at Chase Manhattan Asad Rizvi took to Twitter and said, “SBP after imposing restrictions on CAR financing & then 100% cash on 114 items have amended Exchange Companies Rules to have a better grip on the outflow of currencies that may not be enough.” He added, “It is time to take fiscal measures before all monetary tools get exhausted”.
The rupee traded within a range of 70 paisa per USD registering an intraday high bid of 171.20 and an intraday Low offer of 170.50. PKR traded at 170/171.50 per USD in the Open Market.
The local unit has experienced a devaluation of 7.80% or PKR 13.32 in the fiscal year-to-date against the dollar. In a similar manner, the rupee depreciated by 6.46% or PKR 11.03 in CY21, with the month-to-date (MTD) position reflecting a drop of 0.12%.
On the other hand, the currency suffered a loss of 28 paisa to the Pound Sterling as it closed at PKR 232.21 per GBP, compared to the closing at PKR 231.93 per GBP during the previous days’ trading session.
Similarly, PKR’s value fell by 1 paisa against EUR after closing at PKR 197.69 at the interbank on October 7.
Within the money market, the overnight repo rate was 7.35/7.45 % towards the closing of the session whereas the 1-week rate was 7.35/7.40%.