Foreign Exchange

USDPKR came up mid-week as corporates with large payments in the pipeline sought to pay them off ahead of the week. Exporters did not show much interest in the forward market in part due to Eid but largely because they find themselves well hedged up to the next ten months. Importers meanwhile, show no change in their hedging strategy with only sporadic forward purchase of the greenback buoyed by their higher managements.

Implied interest rates dipped considerably in the middle of the week due to the overhang of the discount rate cut by central bank. One month traded at a high of 3.39%, 3 months at 3.71% and 6 months at 3.74%.