Interbank closing: PKR continues slight depreciation trend

WEB DESK: In the latest financial update, the Pakistani rupee (PKR) experienced a marginal depreciation against the US dollar (USD) during Monday’s interbank session.

The local currency settled at PKR 279.08 per USD, marking a decrease of over 4 paisa from the previous closing rate of PKR 279.04 per USD.

Throughout the trading day, the PKR witnessed 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 concluded with the PKR achieving its second consecutive weekly gain against the USD, appreciating by approximately 16 paisa.

Despite this positive trend, the PKR remains nearly 20 per cent undervalued on a 12-month horizon and offers around 26 per cent nominal carry.

Within the current financial year, the PKR has demonstrated resilience by appreciating against the dollar by 6.91 rupees, or 2.48 per cent. Meanwhile, the calendar year has seen a 2.78 rupee, or 1 per cent, appreciation in the PKR.

However, recent political and economic uncertainties following the general elections on February 8 have disrupted the stable phase that the PKR had maintained against the USD for a considerable period.

Comparatively, against major foreign currencies, the PKR experienced fluctuations, losing 25.6 paisa against the Euro, closing at 305.45, and gaining against the British Pound by 83.61 paisa, closing at 358.52. The Saudi Riyal closed at 74.41 with a marginal gain, while the U.A.E.

Dirham and Swiss Franc witnessed slight fluctuations. Against the Japanese Yen, the PKR lost 1.48 paisa, closing at 1.9019, and the Chinese Yuan gained 6.56 paisa, closing at 38.86.