The Pakistani Rupee (PKR) reversed gains against the US Dollar (USD) and posted losses in the interbank market today. It lost 23 paisas against the greenback after hitting an intra-day low of Rs. 176.5 against the USD during today’s open market session.
It depreciated by 0.13 percent against the USD and closed at Rs. 176.39 today after gaining seven paisas and closing at 176.16 in the interbank market on Wednesday, 23 February.
The rupee closed in red against the dollar today after the President of Russia, Vladimir Putin, announced his intention to invade Ukraine. Subsequently, Brent jumped to $100 per barrel, as fears of a full-scale conflict in Eastern Europe intensified, and WTI reached $95.54 a barrel.
Brent rose above $100/bbl following Russia’s announcement of a “special military operation” in Ukraine. The oil market will be watching closely to see what measures Western nations will take against Russia. Analysts believe that increasing uncertainty at a time when the oil market is already tight makes it vulnerable and that prices will remain volatile and high.
At the time of press, Brent crude hit $105.3 a barrel in early Asia trade — the highest since September 2014. Consequently, the US Western Texas Intermediate (WTI) crude futures rose by $7.76 to $99.8 a barrel after reaching a high of $96.51.
Discussing the local unit’s performance in a tweet earlier today, the former treasury head of Chase Manhattan Bank, Asad Rizvi, remarked that oil prices are once again on the rise as a result of continued Russia/Ukraine tensions, putting pressure on the #PKR. Meanwhile, forward swaps have risen sharply, with 6-months up 40 paisas or more compared to last week.
INTER BANK MARKET….
Nothing much to add as pressure on #PKR to stay, as oil prices is once again on the up due to ongoing Russia/Ukraine tension.
Meanwhile, forward swaps have surged & against last week, 6-months is up by 40 paisa plus.— Asad Rizvi (@asadcmka) February 24, 2022
The PKR reversed losses against most of the other major currencies and reported gains in the interbank currency market today. It gained 58 paisas against the Canadian Dollar (CAD), Rs. 1.38 against the Euro (EUR), Rs. 2.28 against the Pound Sterling (GBP), and 79 paisas against the Australian Dollar (AUD).
Conversely, the PKR lost six paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED) in today’s interbank currency market.
