The Pakistani Rupee (PKR) reversed gains against the US Dollar (USD) and reported losses in the interbank market today. The local currency lost 99 paisas against the greenback at the close of the session today.
It depreciated by 0.54 percent against the USD and closed at Rs. 182.54 today after gaining three paisas and closing at Rs. 181.55 in the interbank market on Saturday, 16 April. The domestic currency hit an intra-day high of Rs. 181.00 against the USD during today’s open market session.
The rupee’s seven-day winning streak against the dollar came to an end today after the International Monetary Fund (IMF) agreed to resume talks with Pakistan under the $6 billion Extended Fund Facility (EFF) program.
In terms of global factors impacting the local exchange unit, oil prices edged lower on Monday as worries over slowing demand in China balanced support amid a tight global supply crunch and the deepening Russia-Ukraine war.
At the time of filing this report, Brent futures were trading at $111 a barrel, while US West Texas Intermediate (WTI) futures were sitting comfortably at $106.8 a barrel.
Discussing the local currency’s performance earlier during the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi said, “The real test for the new managers is [the] economy. The deterioration in the Exchequer balance is primarily driven by sharp increases in imports”.
He added that the rising oil costs and skyrocketing commodity prices are exacerbating the problems, which must be addressed urgently.
INTER BANK #PKR
Real test for the new managers is economy. The deterioration in the Exchequer balance is primarily driven by sharp increases in imports.
Rising OIL prices & Skyrocketing of commodities prices is further adding to the woes that needs to be checked immediately.— Asad Rizvi (@asadcmka) April 18, 2022
The PKR reversed its good run against the other major currencies and reported losses in the interbank currency market today. It lost 26 paisas against the Saudi Riyal (SAR) and 27 paisas against the UAE Dirham (AED).
Moreover, it lost seven paisas against the Australian Dollar (AUD), 49 paisas against the Pound Sterling (GBP), 55 paisas against the Canadian Dollar (CAD), and 85 paisas against the Euro (EUR) in today’s interbank currency market.
Wait for Mr Ishaq Dar Come and see