At the foreign exchange market, Pakistani Rupee closed slightly lower at 154.875 compared to the previous weekly close 154.850. The State Bank of Pakistan (SBP) reported that in the open market Rupee’s value fluctuated between Rs 154.425 and Rs 155.415 respectively.
In other news, in its latest Global Economic Prospects report, the World Bank revealed a dark picture over Pakistan economy, which is expected to modestly grow by 3% in 2020.
According to the same report, for the fiscal year 2018/2019 the domestic economy is projected to decelerate at 3.3%. Meanwhile, the World Bank also projects the global economy to grow by 2.4% in 2020 compared to 2.3% in 2019.
At the same time the Central Bank of Pakistan in its economic outlook report revealed that the country will most likely miss its 4% growth rate target mainly due to a slowdown in two key sectors (agriculture and industries). In the previous fiscal year ended on June 30, 2019, Pakistan registered 3.3% growth rate the lowest peace in nine years.
Elsewhere, the same State Bank of Pakistan (SBP) said in a tweet that the exchange rate of PKR is not manipulated by the government.
“Under the International Monetary Fund (IMF)-supported program, there is no agreed target level for the exchange rate. ER [exchange rate] is market-determined,” tweeted the SBP.
The benchmark equity index Karachi Stock Exchange KSE-100 Index closed strongly higher registering a gain of 1.61%, after it settled at 43,207 on Friday, and was seen trading on Monday morning Pakistan trading hours at 43,203 down -0.01%. Year-to-date the Pakistan stock exchange market is up around 6.21%.
The Pakistan 10-year government bond yield gaped higher and closed at 11.269 versus 11.019 previous closing rates.
On the other hand, the dollar index, which gauges the greenback’s strength against a basket of major currencies, settled at 97.35 on Friday.
During early Asia trading hours, the USD/PKR exchange rate was seen stabilizing at 154.82.