The Pakistani Rupee (PKR) continued its historic landslide against the US Dollar (USD) and reported losses in the interbank market today. The local currency lost Rs. 1.14 against the greenback at the close of the session today. This is one of the biggest single-day losses that the local currency has reported since the start of 2022.
It depreciated by 0.62 percent against the USD and closed at Rs. 185.23 today after losing 61 paisas and closing at Rs. 184.09 in the interbank market on Friday, 1 April. The domestic currency hit an intra-day high of Rs. 183.55 against the USD during today’s open market session.
The rupee plunged to another low against the dollar today on account of a bank holiday for the deduction of Zakat on Monday. Today’s exchange rate spillover was expected on the backdrop of political history that was made on Sunday when Prime Minister Imran Khan dissolved parliament after the dismissal of the Opposition’s “Vote of No-Confidence” motion by the Speaker.
In terms of factors impacting fiscal movement globally, oil prices rose on Tuesday as the United States and Europe planned more sanctions against Russia over alleged “war crimes” in Ukraine, raising concerns over tighter global supply, while Iran’s nuclear talks with world powers stalled.
Brent crude was up $1.17, or 1.1 percent, to $108.70 a barrel at 0952 GMT. The US West Texas Intermediate was up $1.15, or 1.1 percent, at $104.43.
Discussing the local currency’s performance earlier during the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, remarked that Pakistan could be heading for elections that will rattle the financial markets. Moreover, because oil will continue to be a cause for concern, the government should slash its import bill.
He added that because of Ramadan, remittances are the only option as other financing sources could temporarily dry up.
INTER BANK
In my 31/3 note,I warned that V cud B heading for ELECTIONS that will rattle the financial market. Govt should slash imports bill,as OIL prices will remain a cause of worry. Due2 Ramazan, Remittances is the only hope,as other financing sources cud temporarily dry up https://t.co/dFObF8nvtK
— Asad Rizvi (@asadcmka) April 4, 2022
The PKR struggled against most of the major currencies and reported losses in the interbank currency market today. It lost 31 paisas against the UAE Dirham (AED), 30 paisas against the Saudi Riyal (SAR), Rs. 1.48 against the Canadian Dollar (CAD), Rs. 1.50 against the Pound Sterling (GBP), and Rs. 3.30 against the Australian Dollar (AUD).
Conversely, it gained 25 paisas against the Euro (EUR) in today’s interbank currency market.
