The Pakistani rupee (PKR) witnessed a marginal depreciation against the US dollar in Monday's interbank session.
The currency settled the trade at PKR 278.2 per USD, reflecting a decrease of over 7 paisa compared to the previous session's closing of PKR 278.12 per USD.
During the day's trading, the PKR experienced an intraday high (bid) of 278.45 and a low (ask) of 278.25, showcasing the inherent volatility in the foreign exchange markets.
In the open market, exchange companies quoted the dollar at 276.64 for buying and 279.25 for selling, highlighting the variance in rates between interbank and open market transactions.
While these fluctuations unfold, Pakistan strides towards economic stability, initiating formal discussions with the International Monetary Fund (IMF) for a longer and larger program.
This move comes on the heels of Pakistan's commendable performance under the Standby Arrangement with the IMF, meeting all seven Quantitative Performance Criteria (QPCs) for end-December 2023.
However, amidst these strides towards financial stability, concerns linger regarding potential social tensions in Pakistan, driven by a complex political landscape and the high cost of living. The IMF has cautioned that these factors could potentially impede policy and reform implementation efforts.
In comparison to major global currencies, the PKR showcased mixed performance. Against the Euro, the PKR gained 15.66 paisa, closing at 299.78. Conversely, the British Pound became marginally cheaper by 15.76 paisa, closing at 348.44, while the Swiss Franc saw losses of 17.22 paisa, closing at 306.8.
Against the Japanese Yen, PKR gained 0.23 paisa, closing at 1.7846, whereas the Chinese Yuan depreciated by 4.19 paisa, closing at 38.45. The Saudi Riyal closed at 74.18 with a gain of 2.08 paisa, and the U.A.E Dirham increased in value by 1.91 paisa, closing at 75.72.
Reflecting on the broader picture, the current financial year has witnessed the PKR appreciating against the Dollar by 7.8 rupees or 2.8%, while the calendar year has seen an appreciation of 3.67 rupees or 1.32%.
In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates experienced a slight decrease by 1 bps to 21.32% and 21.57%, indicating a nuanced trend in financial market dynamics.
