The Pakistani Rupee (PKR) reversed losses against the US Dollar (USD) and posted gains in the interbank market today. It gained five paisas against the greenback after hitting an intra-day low of Rs. 177.7 against the USD during today’s open market session.
It appreciated by 0.03 percent against the USD and closed at Rs. 177.41 today after losing 35 paisas and closing at 177.47 in the interbank market on Monday, 28 February.
The rupee halted losses against the dollar after Prime Minister Imran Khan on Monday promulgated a host of economic relief measures, including a Rs. 10 per liter reduction in the price of petrol and diesel. He made the announcement during his speech to the nation about the country’s economic situation and global challenges in the aftermath of Russia’s invasion of Ukraine. He mentioned that there would be no price hikes in petrol or electricity until the next budget.
Regardless, today’s local exchange unit support goes against global inflationary trends. Oil prices surged on Tuesday as concerns over supply interruptions following Russia’s invasion of Ukraine and subsequent sanctions drove up oil prices.
Brent crude futures were up $3.63, or 3.71 percent, to $101.60 a barrel by 11:16 GMT, after hitting $102.32 during early trading hours. Likewise, U.S. West Texas Intermediate (WTI) crude futures were up $3.08, or 3.22 percent, at $98.80. The contract touched a high of $99.10 a barrel the previous day, before gaining more than 4 percent
Discussing the local currency’s performance earlier during the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, remarked that the Prime Minister announced a relief package yesterday, which is a mixed bag that will benefit jobless graduates in various ways. The reaffirmation of tax incentives on the IT sector is a positive move. However, it is still early to comment on how the industrial sector will respond to these measures.
The government’s coffers will be strained by the proposed fuel and power relief, he warned.
INTER BANK- MARCH 01.
PM announced relief package. It’s a mixed bag that will help jobless graduate 2some extent. Tax incentive 2 IT sector is a positive move. It early 2 comment that how industrial sector will respond. But Fuel & Electricity relief will add burden on GOVT KITTY
— Asad Rizvi (@asadcmka) February 28, 2022
The PKR parried losses against some of the other major currencies and reported gains in the interbank currency market today. It gained one paisa against both the Saudi Riyal (SAR) and the UAE Dirham (AED).
Conversely, the PKR lost 20 paisas against the Euro (EUR), 57 paisas against the Pound Sterling (GBP), 95 paisas against the Canadian Dollar (CAD), and Rs. 1.2 against the Australian Dollar (AUD) in today’s interbank currency market.
