Rupee Reports Even Bigger Gains Against US Dollar As Oil Prices Start to Fall

The Pakistani Rupee (PKR) continued to recover against the US Dollar (USD) and reported gains in the interbank market today. The local currency gained 42 paisas against the greenback at the close of the session today.

It appreciated by 0.23 percent against the USD and closed at Rs. 185.62 today after gaining 70 paisas and closing at Rs. 186.05 in the interbank market on Monday, 25 April. The domestic currency hit an intra-day low of Rs. 186.00 against the USD during today’s open market session.

The rupee reported gains against the dollar for the second consecutive day as global oil prices fell following China’s expansion of COVID testing in Beijing, which has heightened demand concerns. At the time of filing this report, Brent crude futures dipped $0.52, or 0.5 percent, to $101 a barrel, while the US West Texas Intermediate (WTI) crude futures lost $0.75, or 0.75 percent, to sit at 97.5 a barrel.

Discussing the local currency’s performance earlier during the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi remarked that the IMF mission will come in May for its 7th EFF review, which may cause a delay in arrangements and no money until June. It may put more strain on the foreign reserves unless money can be provided from other sources, which is feasible.

“But import slowdown due to budget should give space to PKR,” he added.

The PKR performed well against most of the other major currencies and reported gains in the interbank currency market today. It gained 11 paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED), 38 paisas against the Canadian Dollar (CAD), 90 paisas against the Pound Sterling (GBP), and Rs. 1.33 against the Euro (EUR).

Conversely, it lost one paisa against the Australian Dollar (AUD) in today’s interbank currency market.