The Pakistani Rupee (PKR) reversed gains against the US Dollar (USD) and posted losses in the interbank market today. It lost 76 paisas against the greenback after hitting an intra-day high of Rs. 174.50 against the USD during today’s open market session.
It depreciated by 0.43 percent against the USD and closed at Rs. 175.47 today after gaining 16 paisas and closing at 174.71 in the interbank market on Friday, 11 February.
The rupee plunged against the dollar today as oil prices steadied on Monday after earlier hitting a seven-year high due to fear of a possible Russian invasion of Ukraine that could trigger American and European sanctions that will disrupt exports from one of the world’s top oil producers.
The threat of a Russian invasion of Ukraine is piling pressure on the global oil market, pushing prices closer to $100 a barrel as traders worldwide forecast the already fragile supply chain will struggle to cushion the effect of any significant disruptions in the exports of Russian fossil fuel.
At home, Pakistan’s inflows of remittances fell by 14.9 percent on a month-on-month basis due to seasonality. Meanwhile, official numbers from the State Bank of Pakistan (SBP) revealed that the inflows stood at $2.14 billion in January 2022 and remained above $2 billion for the twentieth consecutive month.
Discussing the local unit’s performance in a tweet earlier today, the former treasury head of Chase Manhattan Bank, Asad Rizvi, remarked that the reduction in working days to 19 in January 2022 caused a drop in remittances in January, which is expected. The daily average is almost $120 million, while remittances in February could be slightly higher. On the flip side, he warned, “But higher oil prices are generating considerable pressure adding to the burden that may weaken [the] PKR & push inflation higher”.
Inter Bank
Fall in REMITTANCES in JAN is normal,as working days was reduced to 19.Roughly daily Avg is $ 120 million.
FEB REMIT # cud be a slightly better.But HIGHER OIL prices is generating considerable pressure adding to the burden that may weaken #PKR & push inflation higher— Asad Rizvi (@asadcmka) February 14, 2022
The PKR reversed its good run against most of the other major currencies and reported losses in the interbank currency market today. It lost 20 paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED), 21 paisas against the Canadian Dollar (CAD), and nine paisas against the Pound Sterling (GBP).
Conversely, it gained 58 paisas against the Euro (EUR) and two paisas against the Australian Dollar (AUD) in today’s interbank currency market.
