The Pakistani Rupee (PKR) reversed losses against the US Dollar (USD) and posted gains in the interbank market today. It gained 33 paisas against the greenback after hitting an intra-day low of Rs. 178.2 against the USD during today’s open market session.
It appreciated by 0.19 percent against the USD and closed at Rs. 177.5 today after losing 21 paisas and closing at 177.83 in the interbank market on Thursday, 3 March.
The rupee reported gains against the dollar today after global oil prices retreated below Thursday’s record highs of almost $120 per barrel. Yesterday’s drop in oil prices occurred on speculation that a nuclear deal could be reached between the US and Iran in the next 72 hours, which would allow the country to increase its oil output, potentially helping ease supply constraints and push prices down.
At the time of press, Brent crude rose as high as $114.23 a barrel testing levels at $112.43, while the U.S. West Texas Intermediate (WTI) added $2.21, or 2.1 percent, to $109.88 after touching a high of $112.84.
At home, the central bank’s weekly report released on Thursday revealed that the country’s total liquid foreign exchange reserves went down by $350.9 million on February 25, 2022, to $22.87 billion, compared to $23.22 billion in the previous week. SBP’s reserves decreased by $344 million to $16.46 billion, compared to $16.80 billion a week earlier.
Discussing the local currency’s performance earlier during the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, remarked that forex reserves remained under pressure throughout February, falling for the fourth week in a row. The quick increase in the trade deficit is the result of rising imports and a modest slowdown in remittances, which has pulled NET SBP reserves down to $16.46 billion, putting pressure on the current account.
INTER BANK
In February Fx Reserves remained under pressure dropping for the 4-consecutive weeks. The rapid growth in trade deficit is caused by higher imports & mild slowdown in remittances pushing NET SBP RESERVES down to $ 16.46bn that could exert pressure on Current Account. pic.twitter.com/NuTEdgnI3n
— Asad Rizvi (@asadcmka) March 4, 2022
The PKR reversed losses against other major currencies and reported gains in the interbank currency market today. It gained 44 paisas against the Australian Dollar (AUD), Rs. 1.15 against the Canadian Dollar (CAD), Rs. 1.73 against the Pound Sterling (GBP), and Rs. 1.83 against the Euro (EUR).
Moreover, the PKR gained eight paisas against the Saudi Riyal (SAR) and nine paisas against the UAE Dirham (AED) in today’s interbank currency market.
