Rupee Nears All-Time Low Against US Dollar After FATF Announcement

The Pakistani Rupee (PKR) reversed gains against the US Dollar (USD) and posted losses in the interbank market today. It lost 63 paisas against the greenback after hitting an intra-day high of Rs. 177.45 against the USD during today’s open market session.

It depreciated by 0.35 percent against the USD and closed at Rs. 178.13 today after gaining 33 paisas and closing at 177.50 in the interbank market on Friday, 4 March.

The rupee closed in red against the dollar after global oil prices surpassed $130 for the first time in more than a decade during early hours today after news that buyers are racing to replace Russia’s banned crude by paying record premiums for barrels that can be delivered now rather than later, underscoring concerns about sufficient near-term fuel supplies. Brent jumped above $130 a barrel as fears of a global economic slowdown intensified.

At the time of press, Brent futures were sitting at $125 a barrel in mid-day Asia trade — the highest since September 2008, up by over $20 in a space of two days. Consequently, the US Western Texas Intermediate (WTI) crude futures rested above $120 a barrel after reaching a high of $125.9 earlier today.

Moreover, the Financial Action Task Force (FATF), on Friday, decided to keep Pakistan on the greylist for another four months till June 2022, which further contributed to the PKR devaluation.

Discussing the local currency’s performance earlier during the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, remarked that despite the fact that Pakistan completed 26 of the 27 action plans, the FATF did not recognize Pakistan’s efforts to overcome counter-terrorist financing inadequacies. “Pakistan remain[s] committed to strengthen[ing] AML/CTF regime that meets in June/22,” he added.

The PKR reversed gains against most of the other major currencies and reported losses in the interbank currency market today. It lost 16 paisas against the Saudi Riyal (SAR), 17 paisas against the UAE Dirham (AED), 45 paisas against the Canadian Dollar (CAD), and Rs. 1.56 against the Australian Dollar (AUD)

Conversely, the PKR gained Rs. 1.24 against the Pound Sterling (GBP), and Rs. 1.66 against the Euro (EUR) in today’s interbank currency market.



  • Get Alerts

    Follow ProPakistani to get latest news and updates.


    ProPakistani Community

    Join the groups below to get latest news and updates.



    >