The Pakistani Rupee (PKR) crashed to another all-time low against the US Dollar (USD) and posted losses in the interbank market today. It lost 23 paisas against the greenback after hitting an intra-day low of Rs. 179.50 against the USD during today’s open market session.
It depreciated by 0.13 percent against the USD and closed at Rs. 179.22 today after losing 47 paisas and closing at 178.98 in the interbank market on Monday, 14 March.
The local unit has so far lost 1.53 percent or Rs. 2.70 during 2022. On a Fiscal Year to Date (FYTD) basis, it has depreciated by 13.75 percent or Rs. 21.67.
The rupee closed in red against the dollar today after global oil futures briefly fell below $100 per barrel as investors set their hopes on diplomatic progress between Ukraine and Russia to end their war. On the flip side, an increase in COVID-19 cases in China and restricted supply movements rattled market players.
At the time of press, Brent futures were down by $5.87.67, or 5.49 percent, at $101.00 a barrel, and U.S. West Texas Intermediate (WTI) crude fell $5.87, or 5.70 percent, to $97.17 a barrel.
Today’s movement represents a shift in moods regarding Russia/Ukraine, which pushed big-name traders to sell. Moreover, the fundamental concerns about demand caused by China’s COVID lockdowns also drove fundamental traders to take profits and absorb pressure as crude prices ease.
Discussing the local unit’s performance in a tweet earlier today, the former treasury head of Chase Manhattan Bank, Asad Rizvi, remarked that the PKR fell to an all-time low of 179 per dollar. Oil is a big contributor to the rupee’s decline, however, the price of Brent has recently dropped by about 20 percent. Lockdowns in various Chinese cities are thought to have aided the situation.
He added, “SCRA outflow of $86mn suggest[s] geopolitical uncertainty has dented [the] investors appetite”.
INTER BANK #PKR hit a historic all time low of 179 per $.Oil is major factor behind Rupee’s fall,though recently price of BRENT eased by nearly 20% lockdown in several cities in China helped.
SCRA outflow of $ 86mn suggest geopolitical uncertainty2 has dented investors appetite— Asad Rizvi (@asadcmka) March 15, 2022
The PKR struggled against most of the other major currencies and reported losses in the interbank currency market today. It lost six paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED), eight paisas against the Pound Sterling (GBP), and 97 paisas against the Euro (EUR).
Conversely, it gained 83 paisas against the Canadian Dollar (CAD), and Rs. 1.02 against the Australian Dollar (AUD) in today’s interbank currency market.
