The Pakistani Rupee (PKR) reversed losses against the US Dollar (USD) and posted gains in the interbank market today. It gained seven paisas against the greenback after hitting an intra-day low of Rs. 176.5 against the USD during today’s open market session.
It appreciated by 0.04 percent against the USD and closed at Rs. 176.16 today after losing 48 paisas and closing at 176.23 in the interbank market on Tuesday, 22 February.
Against market expectations, the rupee reported gains against the dollar today after oil prices dipped earlier on Wednesday (today), retreating from seven-year highs as it became evident that the first round of US and EU sanctions against Russia would not impact oil supplies. Reuters reported that Brent crude was down 59 cents, or 0.6 percent, to $96.25 a barrel at 1027 GMT, after hitting $99.50 yesterday, the highest since September 2014.
Regardless of today’s Brent slide, market players expect the Russia-Ukraine conflict to continue to support oil prices for the time being, with some Western countries pledging to apply more sanctions if Russia conducts a full-scale invasion of its neighbor.
Discussing the local unit’s performance in a tweet earlier today, the former treasury head of Chase Manhattan Bank, Asad Rizvi, remarked that the PKR has weakened slightly as a result of the long weekend in New York, and tensions between Russia and Ukraine are unquestionably a major risk factor. While the global market awaits the result of the battle, it will continue to chase news stories, but oil will remain a major source of concern.
INTER BANK
Long weekend in NYK lead to mild weakness of #PKR. Russia/Ukraine tension is certainly a dominant risk factor. Globally market awaits outcome of the conflict,it will keep on chasing the news headlines,but #OIL is a major worrying factor that will continue to bother us
— Asad Rizvi (@asadcmka) February 23, 2022
The PKR reversed gains against most of the other major currencies and reported losses in the interbank currency market today. It lost 19 paisas against the Canadian Dollar (CAD), 57 against the Pound Sterling (GBP), 65 paisas against the Euro (EUR), and 76 paisas against the Australian Dollar (AUD).
Conversely, the PKR gained one paisa against the Saudi Riyal (SAR) and two paisas against the UAE Dirham (AED) in today’s interbank currency market.
