Rupee Plunges Below Rs. 180 Against US Dollar With Oil Shortage Imminent

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 63 paisas against the greenback after hitting an intra-day low of Rs. 180.10 against the USD during today’s open market session.

It depreciated by 0.35 percent against the USD and closed at Rs. 180.07 today after losing 22 paisas and closing at Rs. 179.44 in the interbank market on Wednesday, 16 March.

The rupee crashed to its lowest ever rate after oil prices rose 4 percent when earlier today, the International Energy Agency (IEA) announced that three million barrels per day (bpd) of Russian oil and products could be shut down from April onwards, despite the Federal Reserve’s decision to hike interest rates in the United States.

The supply loss would be significantly more than the one million bpd decline in demand predicted as a result of the rising fuel prices, according to an IEA assessment released on Wednesday.

At the time of press, benchmark Brent futures gained $4, or 4.1 percent, to $102.8 a barrel. The West Texas Intermediate (WTI) crude was up $3.82, or 4 percent, to $99.43 a barrel. Both contracts fell on Wednesday, following a jump in US crude stockpiles and signals of progress in Russia-Ukraine talks.

Discussing the local unit’s performance in a tweet earlier today, the former treasury head of Chase Manhattan Bank, Asad Rizvi, remarked that the dollar continued to rise against the PKR, reaching an all-time low of Rs. 179.60 in the interbank market, while the SBP’s closing rate was Rs. 179.44. Political insecurity and global upheaval aren’t helping the situation, adding that “When the economic uncertainty increases, the future gets clogged.”

The PKR struggled against 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), Rs. 1.51 against the Canadian Dollar (CAD), Rs. 2.35 against the Australian Dollar (AUD), and Rs. 3.27 against the Pound Sterling (GBP).

Moreover, it lost Rs. 2.33 against the Euro (EUR) in today’s interbank currency market.

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