PKR Gains Over 16 Paisa Against USD

The Pakistani rupee (PKR) appreciated by over 16 paisa against the US dollar in Monday's interbank session as the currency settled the trade at PKR 279.2 per USD, compared to the previous session's closing of PKR 279.36 per USD.

The currency saw an intraday high (bid) of 280 and a low (ask) of 279.

The long awaited conclusion of general elections and its results have signaled a positive wave to the financial markets.

PKR was under a phase of stability until last week where it observed persistent fluctuations against USD.

The pressure was attributed to the political unrest that had been spreading in the nation since the elections of February 08.

It is crucial to mention that the International Monetary Fund (IMF) on Thursday expressed its eagerness to collaborate with the new government on policies to ensure macroeconomic stability. 

The Fund appreciated the caretaker government of Pakistan for its efforts in maintaining economic stability through strict adherence to fiscal targets, while also safeguarding the social safety net.

After an extended period of stability, this week observed persistent fluctuations in the PKR against the USD.

In comparison to major currencies, PKR gained 23.16 paisa against the Euro, closing at 302.32 compared to the previous value of 302.55.

The British Pound became cheaper by 8 paisa closing at 353.87 compared to 353.95 from a day ago.

The Swiss franc saw losses of 18.42 paisa, closing at 316.98 compared to 317.17 from the previous session.

Against the Japanese Yen, PKR lost 0.06 paisa, closing at 1.8555 versus 1.8549 a day ago.

The Chinese Yuan lost 2.23 paisa, closing at 38.79 against 38.81 from the previous session.

The Saudi Riyal closed at 74.45 with a loss of 4.13 paisa from its value of 74.49 a day ago.

The U.A.E Dirham decreased in value by 4.42 paisa from 76.02 a day ago to 76.06.

During the current financial year, PKR has appreciated against the Dollar by 6.79 rupees or 2.43%. While the current calendar year has seen PKR appreciate by 2.66 rupees or 0.95%.

In the Money Market, the benchmark 6 Month Karachi Interbank Bid and Offer rates inched up by 6 bps to 21.49% and 21.74%.

Yields have started to pick up since the central bank in its last meeting kept borrowing costs at a record high of 22% for a fifth consecutive meeting to curb inflation.