Interbank closing: PKR gains 7 paisa versus USD

WEB DESK: In a positive turn of events, the Pakistani rupee (PKR) managed to break its four-day losing streak, gaining approximately 7 paisa against the US dollar (USD) during Thursday’s interbank session.

The currency settled at PKR 279.29 per USD, marking an improvement from the previous session’s closing rate of PKR 279.35 per USD.

During the day, the PKR experienced an intraday high (bid) of 279.75 and a low (ask) of 279.25. In the open market, exchange companies quoted the buying rate for the dollar at 279.11, while the selling rate stood at 281.74.

Comparatively, the PKR faced challenges against other major currencies. Notably, it lost 81.95 paisa against the Euro, closing at 304.23, and saw a 52.76 paisa increase in the British Pound, settling at 355.59.

The Swiss franc, on the other hand, gained 89.01 paisa, closing at 316.79. Against the Japanese Yen, the PKR lost 1.85 paisa, closing at 1.8865, while the Chinese Yuan experienced a marginal decrease of 0.46 paisa, closing at 38.8.

The Saudi Riyal closed at 74.46, recording a loss of 2.11 paisa, and the U.A.E. Dirham decreased by 1.44 paisa, ending at 76.06.

Analysing the performance over the financial year, the PKR demonstrated strength against the dollar, appreciating by 6.71 rupees, or 2.4 per cent. In the current calendar year, the PKR has appreciated by 2.58 rupees, or 0.92 per cent.

Shifting focus to the money market, the benchmark 6-month Karachi Interbank bid and offer rates witnessed a 10 bps drop, settling at 21.18 per cent and 21.43 per cent.

Moreover, secondary market yields experienced a further decline following yesterday’s auction, with Market Treasury Bills (MTB) yields dropping significantly by up to 30 bps.

The consistent decrease in auction yields, coupled with a 20-month low in inflation figures, has heightened expectations among market participants for an imminent rate cut.

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