The Pakistani Rupee (PKR) continued its fall against the US Dollar (USD) and reported losses in the interbank market today. The local currency lost Rs. 1.90 against the greenback at the close of the session today.
It depreciated by 1.03 percent against the USD and closed at Rs. 184.44 today after losing 99 paisas and closing at Rs. 182.54 in the interbank market on Monday, 18 April. The domestic currency hit an intra-day low of Rs. 184.65 against the USD during today’s open market session.
The local unit has lost 1.57 percent of its value against the dollar in the last two trading sessions alone. Since 14 May 2021, it has lost 17.44 percent against the dollar, while on a fiscal year-to-date basis, it has devalued by 14.58 percent.
The rupee collapsed against the dollar today after the World Bank’s remarks on Pakistan’s growth forecast. As expected, prices came under pressure with the dollar proving to be more expensive for holders of other currencies.
According to the lender’s Pakistan Development Update, released on Tuesday, while economic activity maintained its momentum from July-December 2021, high demand pressures and rising global commodity prices led to double-digit inflation and a sharp rise in the import bill during this period. These developments have had an adverse impact on the rupee. Moreover, long-standing structural weaknesses of the economy including low investment, low exports, and low productivity growth pose risks to a sustained recovery.
Globally, oil prices see-sawed on Tuesday as investors fretted over tight global supplies. 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 a barrel.
Discussing the local currency’s performance earlier during the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi commented that the PKR went into the 95-paisa band (181.65 to 182.60) yesterday. He explained that the pressure on the local currency increased following reports of a drop in foreign reserves and increasing oil costs. Monday is the first day of the week, and after the long weekend, there was a rush of consumers. “Expecting normal trading activity,” he added.
INTER BANK
Y’day #PKR moved within 95 paisa band (181.65 to 182.60).The pressure on local currency mounted after reports of fall in FX RESERVES & higher OIL prices. Monday is the 1st day of the week,there was rush of customers after long weekend.Expecting normal trading activity
— Asad Rizvi (@asadcmka) April 19, 2022
The PKR continued its bad run against the other major currencies and reported losses in the interbank currency market today. It lost 50 paisas against the Saudi Riyal (SAR) and 51 paisas against the UAE Dirham (AED).
Moreover, it lost Rs. 1.71 against the Australian Dollar (AUD), Rs. 1.82 against the Euro (EUR), Rs. 2.13 against the Canadian Dollar (CAD), and Rs. 2.31 against the Pound Sterling (GBP) in today’s interbank currency market.
