KARACHI, (MANEND NEWS): The Pakistani rupee (PKR) started the week lower, depreciating by 51.94 paisa against the US dollar in Monday’s interbank session to settle the trade at PKR 287.55 compared to the previous day’s closing of PKR 287.03 per USD.
The local unit saw an intraday high (bid) of 287.55 and a low (ask) of 287.25.
In the open market, the local unit lost 1 rupee as exchange companies quoted the dollar at 288 for buying and 289 for selling, compared to the previous closing of 287 for buying and 288 for selling.
It is important to mention that the local unit lost around 2.7 rupees of its value against the USD last week.
The pressure resulting from the gap between the demand and supply of dollars again prevailed over the market and the PKR marked its 15th consecutive loss against the greenback.
The easing of trade restrictions, in accordance with the conditions set by the International Monetary Fund (IMF) for the Standby Agreement, increased demand for dollars, putting pressure on the local currency.
It is important to mention that Pakistan’s trade deficit for the month of October widened by over 38% MoM to $2.099 billion compared to a deficit of $1.518bn from the previous month.
In a positive development, the latest Workers’ remittances data released by the central bank showed that the remittances increased by 11.54% MoM in October to $2.46 billion.
The increase is attributed to the army-backed crackdown against speculators, hoarders, and smugglers to restrict illegal dollar outflows and effectively strengthen the PKR against the USD.
As a result, non-resident Pakistanis preferred to utilize official channels, thereby enhancing the transparency of the inflow of foreign currency.
Further positivity emerges from the satisfaction of the International Monetary Fund (IMF)’s review mission, as the country met the targets set by the fund for the first quarter of the fiscal year 2023-24.
In comparison to major currencies, PKR lost 1.16 rupees against the Euro, closing at 307.42 compared to the previous value of 306.26.
The British Pound became expensive by 1.48 rupees, closing at 352 compared to 350.52 from a day ago.
The Swiss franc saw gains of 85.75 paisa, closing at 318.72 compared to 317.86 from the previous session.
Against the Japanese Yen, PKR gained 0.05 paisa, closing at 1.895 versus 1.895 a day ago.
The Chinese Yuan gained 8.61 paisa, closing at 39.4444 against 39.3583 from the previous session.
The Saudi Riyal closed at 76.67 with a gain of 14.56 paisa from its value of 76.52 a day ago.
The U.A.E Dirham increased in value by 14.36 paisa from 78.146 a day ago to 78.29.
During the current financial year, PKR has depreciated against the Dollar by 1.56 rupees or 0.54%. While the current calendar year has seen PKR depreciate by 61.12 rupees or 21.26%.
In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates were unchanged at 21.44% and 21.69%.