The Pakistani Rupee (PKR) continued to lose ground against the US Dollar (USD) and posted losses in the interbank market today. It lost 30 paisas against the greenback after hitting an intra-day low of Rs. 176.37 against the USD during today’s open market session.
It depreciated by 0.18 percent against the USD and closed at Rs. 175.78 today after losing 76 paisas and closing at 175.47 in the interbank market on Monday, 14 February.
The rupee reported losses against the dollar for the second consecutive day as oil prices continue to test historic levels despite easing off momentarily after reports of a possible de-escalation of tensions between Russia and Ukraine.
Reuters reported that some troops in Russia’s military camps adjacent to Ukraine have started returning to their bases, which could ease relations between Moscow and the West.
From the outset, oil and gas prices have been rising for months as exporting countries like Libya have struggled with production issues, and their demand has rapidly gone up after two years of the pandemic. However, it all pales in comparison with what could happen if a war in Eastern Europe and potential Western sanctions on Russia curtail Libya’s production.
Discussing the local unit’s performance in a tweet earlier today, the former treasury head of Chase Manhattan Bank, Asad Rizvi, remarked that emerging market currencies are under pressure as a result of geopolitical instability. Simultaneously, investors’ focus has switched to safe-haven assets. Consumers’ wallets are being severely impacted by rising oil prices and increased demand.
On the flip side, he warned, “Yesterday, PKR [t00] lost 77 paisa[s] [and] will remain stressed”.
INTER BANK
Emerging market currencies are under pressure due to uncertainty caused by geo political anxiety. Interest has shifted towards safe haven assets. Soaring oil prices & increase in demand is hurting consumers wallet badly. Y’day #PKR 2lost 77 paisa will remain stressed.
— Asad Rizvi (@asadcmka) February 15, 2022
The PKR continued its bad run against the other major currencies and reported losses in the interbank currency market today. It lost seven paisas against the Saudi Riyal (SAR), eight paisas against the UAE Dirham (AED), 76 paisas against the Canadian Dollar (CAD), and Rs. 1.25 against the Pound Sterling (GBP).
Moreover, it lost 90 paisas against the Euro (EUR) and Rs. 1.05 against the Australian Dollar (AUD) in today’s interbank currency market.
