The Pakistani Rupee (PKR) reversed gains against the US Dollar (USD) and posted losses in the interbank market today. It lost 21 paisas against the greenback after hitting an intra-day low of Rs. 177.7 against the USD during today’s open market session.
It depreciated by 0.12 percent against the USD and closed at Rs. 177.62 today after gaining five paisas and closing at 177.41 in the interbank market on Tuesday, 1 March.
The rupee reported losses today after the prices of oil surpassed $110 for the first time in more than seven years on Wednesday (today) amid increasing supply chain disruptions and countries seeking alternative oil merchants in an already tight market.
Brent crude hit $112.06 per barrel after going up by $7.09 in afternoon Asia trade — the highest since September 2014, and was at $110.23 a barrel at 0420 GMT, up by $5.30. Consequently, the US Western Texas Intermediate (WTI) crude futures rose by $7.21 to $110.62 a barrel.
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 guaranteed the nation that energy prices would be reduced, implying that the cost of rising oil prices would not be passed on to consumers. However, higher oil prices threaten to expand the trade deficit as the geopolitical situation intensifies. Furthermore, rising commodity prices are already fueling inflation, which is terrible for the PKR.
I/BANK
PM assured the nation of cut in energy prices,which means cost of rising oil prices will not be passed on 2 consumers. As geopolitical situation worsens,higher oil risks widening of trade deficit.Surging commodity price is already stoking inflation that’s bad for #PKR too
— Asad Rizvi (@asadcmka) March 2, 2022
The PKR parried losses against most of the other major currencies and reported gains in the interbank currency market today. It gained 26 against the Australian Dollar (AUD), 46 paisas against the Canadian Dollar (CAD) Rs. 1.84 against the Euro (EUR), and Rs. 2.14 against the Pound Sterling (GBP).
Conversely, the PKR lost five paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED) in today’s interbank currency market.
We Bert oureu k Pakistan
Haert so nery just ship bash vxbng