The Pakistani Rupee (PKR) crashed to another all-time low against the US Dollar (USD) and posted losses in the interbank market today.
It depreciated by 0.26 percent against the USD and closed at Rs. 181.73 today after losing 67 paisas in the interbank market today.
The local curreny lost 48 paisas against the greenback after hitting an intra-day high of Rs. 181.00 against the USD during today’s open market session.
The rupee maintained its record-breaking plunge against the dollar for the seventh consecutive day. Cumulatively, it has shed Rs. 3.22 against the greenback after screaming below pre-IMF levels of Rs. 178 on March 11.
A strong dollar makes crude more expensive for other currency holders and tends to weigh on substantial risk for developing countries like Pakistan, and this notion is spreading panic across local markets.
Pakistan is vastly reliant on imported energy, and the persistent deterioration of foreign exchange reserves has spurred panic among importers, who are buying foreign currency at a record low inter-bank rate.
In terms of external affairs affecting economic growth, European Union nations are split on whether to join the United States in banning Russian crude. In this context, countries like Germany say the region is too dependent on Russia’s fuel to withstand such an option.
At the time of press, benchmark Brent crude futures surged to $115.9 a barrel, while the US West Texas Intermediate (WTI) crude made more gains and soared as high as $112 a barrel.
The PKR struggled against most of the other major currencies and reported losses in the interbank currency market today. It lost 13 paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED), 37 paisas against the Canadian Dollar (CAD), 56 paisas against the Australian Dollar (AUD), and 77 paisas against the Pound Sterling (GBP).
Conversely, it gained 60 paisas against the Euro (EUR) in today’s interbank currency market.
