The Pakistani Rupee (PKR) continued its disappointing run against the US Dollar (USD) and posted losses in the interbank market today. It lost 35 paisas against the greenback after hitting an intra-day high of Rs. 177.0 against the USD during today’s open market session.
It depreciated by 0.20 percent against the USD and closed at Rs. 177.47 today after losing 71 paisas and closing at 177.11 in the interbank market on Friday, 25 February.
The rupee reported losses against the dollar for the third consecutive day after global oil prices surged on Monday (today) as Western allies imposed more sanctions on Russia and blocked some Russian banks from SWIFT, a global payments system, which could cause substantial disruption to the country’s oil exports.
At the time of press, Brent crude rose $4.82, or 4.9 percent, to $102.75 by 1028 GMT after touching a high of $105.07 a barrel in early trade. U.S. West Texas Intermediate (WTI) crude was up $4.62, or 5 percent, at $96.21 after hitting $99.10 in early-morning trade.
Meanwhile, Russian crude oil grades, which account for about 10 percent of the global oil supply, were bludgeoned in physical markets.
Discussing the local currency’s performance earlier during the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, remarked that oil prices might potentially surge as a result of the restriction on Russian banks using SWIFT. Although the direct impact of conflict on Pakistan’s economy may appear to be minimal, a storm is brewing, he warned.
I/BANK FEB 28
With ban imposed on Russian Banks using SWIFT & if it reacts #OIL prices could possibly skyrocket. Do V @ImranKhanPTI @shaukat_tarin have enough of A CONTINGENCY PLAN?Though it may seem direct impact of conflict will be minimal on our economy.
A STORM IS BREWING ! https://t.co/oDQ9e8TGkd— Asad Rizvi (@asadcmka) February 27, 2022
The PKR maintained its bad run against the other major currencies and reported losses in the interbank currency market today. It lost nine paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED), 26 paisas against the Australian Dollar (AUD), and 51 paisas against the Canadian Dollar (CAD).
Conversely, the PKR gained three paisas against the Euro (EUR) and 10 paisas against the Pound Sterling (GBP) in today’s interbank currency market.
