PKR Falls by Over 4 Paisa Against USD

PKR Falls by Over 4 Paisa Against USD

The Pakistani rupee (PKR) depreciated by over 4 paisa against the US dollar in Monday's interbank session as the currency settled the trade at PKR 279.08 per USD, compared to the previous session's closing of PKR 279.04 per USD.

The currency saw an intraday high (bid) of 279.5 and a low (ask) of 279.2.

In the open market, exchange companies quoted the dollar at 280.5 for buying and 281.8 for selling.

Last week, the home unit marked its second consecutive weekly win against the mighty Dollar by appreciating around 16 paisa.

According to Goldman Sachs’ GSDEER framework, PKR is nearly 20% undervalued on a 12-month horizon and offers about 26% nominal carry.

The Goldman Sachs Economic Research report further suggests that positive real rates could be the catalyst needed for the Rupee's value increase, provided inflation rates begin to decline.

Currently, the home unit has somewhat lost the stable phase that it had maintained against the USD for a significant period due to the political and economic uncertainty that arose after the general elections held in the country on February 08.

It is crucial to note that Shehbaz Sharif was elected on Sunday as the prime minister of the country for a second term.

According to the newly elected prime minister, Pakistan needs deep surgery to bring revolutionary changes in the system and reform various sectors.

In comparison to major currencies, PKR lost 25.6 paisa against the Euro, closing at 305.45 compared to the previous value of 305.2.

The British Pound became expensive by 83.61 paisa closing at 358.52 compared to 357.68 from a day ago.

The Swiss franc saw gains of 17.6 paisa, closing at 318.6 compared to 318.43 from the previous session.

Against the Japanese Yen, PKR lost 1.48 paisa, closing at 1.9019 versus 1.8871 a day ago.

The Chinese Yuan gained 6.56 paisa, closing at 38.86 against 38.8 from the previous session.

The Saudi Riyal closed at 74.41 with a gain of 1.13 paisa from its value of 74.4 a day ago.

The U.A.E Dirham increased in value by 0.96 paisa from 75.98 a day ago to 75.97.

During the current financial year, PKR has appreciated against the Dollar by 6.91 rupees or 2.48%. While the current calendar year has seen PKR appreciate by 2.78 rupees or 1%.

In the Money Market, the benchmark 6 Month Karachi Interbank Bid and Offer rates inched up by 2 bps to 21.13% and 21.38%.