Rupee Drops to Another Low Against US Dollar Despite Recovery of Oil Prices

The Pakistani Rupee (PKR) continued its historic drop against the US Dollar (USD) and reported losses in the interbank market today. The local currency lost 15 paisas against the greenback at the close of the session today.

It depreciated by 0.08 percent against the USD and closed at Rs. 182.34 today after losing 40 paisas and closing at Rs. 182.19 in the interbank market on Monday, 28 March. The domestic currency hit an intra-day low of Rs. 182.55 against the USD during today’s open market session.

The rupee stumbled to another all-time low against the dollar after global oil prices rose earlier in the day, recouping some of the previous session’s losses as Kazakhstan’s supplies remained disrupted and major players showed no sign of being in a hurry to bolster output amid the supply crunch.

At the time of filing, Brent futures rose by 1.37 percent to $114 per barrel, while the West Texas Intermediate (WTI) recovered yesterday’s losses and peaked at $107 per barrel.

The ongoing political turmoil in the country and disruption in economic progress continue to deplete forex reserves as the country tries to squeeze out impediments for fiscal ease.

Discussing the local currency’s performance earlier during the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, remarked that while the PKR continues to hit new all-time lows on a regular basis as a result of the deterioration of political conditions and the depletion of foreign exchange reserves, economic growth is insufficient to plug the weakness and fill the gap.

He added, “However, on the other hand, Rupee can still correct after [a] minor fall”.

The PKR struggled against most of the other major currencies and reported losses in the interbank currency market today. It lost three paisas against the Saudi Riyal (SAR), four paisas against the UAE Dirham (AED), four paisas against the Canadian Dollar (CAD), and Rs. 1.12 against the Euro (EUR).

Conversely, it gained 22 paisas against the Australian Dollar (AUD) and 53 paisas against the Pound Sterling (GBP) in today’s interbank currency market.



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