The Pakistani Rupee (PKR) reversed losses against the US Dollar (USD) and reported gains in the interbank market today. The local currency gained 70 paisas against the greenback at the close of the session today.
It appreciated by 0.38 percent against the USD and closed at Rs. 186.05 today after losing five paisas and closing at Rs. 186.75 in the interbank market on Saturday, 23 April. The domestic currency hit an intra-day low of Rs. 186.24 against the USD during today’s open market session.
The rupee closed in green against the dollar today after the International Monetary Fund (IMF) announced to field a mission to Pakistan in May to resume discussions over policies for completing its 7th EFF review. Sources said Pakistan underwent a major breakthrough in talks with the lender as the Fund will most likely jack up its $6 billion packages to $8 billion for the cash-strapped country.
Globally, oil dropped nearly 5 percent to its lowest in almost two weeks today, extending last week’s decline as fears grew that prolonged COVID-19 lockdowns in Shanghai and potential increases to US interest rates would hurt global growth and oil demand.
At the time of filing this report, Brent crude futures dipped $4.80, or 4.5 percent, to $101.5 a barrel, while the US West Texas Intermediate (WTI) crude futures lost $4.67, or 4.58 percent, to sit at 97.4 a barrel.
Discussing the local currency’s performance earlier during the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi argued that an undervalued PKR can no longer be a free ride. Forex reserves have slumped due to higher imports, and one of the other causes of mismatch and a wider gap is inflow delay.
He added, “Economy will once again get breathing space after [the] loan is sanctioned”.
INTER BANK
I still believe that undervalued #PKR can no longer be a free ride. FX RESERVES have slumped due to higher imports.The other causes of mismatch & wider gap is inflow delay. Economy will once again get breathing space after loan is sanctioned.https://t.co/tsDyj6IhJV
— Asad Rizvi (@asadcmka) April 24, 2022
The PKR reversed losses against the other major currencies and reported gains in the interbank currency market today. It gained 18 paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED).
Moreover, it gained 81 paisas against the Canadian Dollar (CAD), Rs. 1.83 against the Australian Dollar (AUD), Rs. 1.90 against the Euro (EUR), and Rs. 2.66 against the Pound Sterling (GBP) in today’s interbank currency market.
Good Job, Looks like Ishaq Dar sb is on its way to PAK