Rupee Continues Winning Streak Against US Dollar Despite Oil Rebound

The Pakistani Rupee (PKR) continued its good run against the US Dollar (USD) and reported gains in the interbank market today. The local currency gained 17 paisas against the greenback at the close of the session today.

It appreciated by 0.09 percent against the USD and closed at Rs. 185.45 today after gaining 42 paisas and closing at Rs. 185.62 in the interbank market on Tuesday, 26 April. The domestic currency hit an intra-day high of Rs. 185.25 against the USD during today’s open market session.

The rupee closed in green against the dollar today despite an increase in global oil prices, which were broadly seen on steady levels today after Russia severed gas supplies to Bulgaria and Poland, although lingering concerns about Asian coronavirus lockdowns weighing on economic growth and oil demand kept a lid on expectations. At the time of filing this report, Brent crude futures soared to $105 a barrel, while the US West Texas Intermediate (WTI) crude futures sat comfortably at 102.3 a barrel.

The International Monetary Fund (IMF) recently warned that Asia faces a “stagflationary” outlook with the Ukraine war, a spike in commodity costs, and a slowdown in China.

Discussing the local currency’s performance earlier during the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi said that while there is stress on the economy, some stability is visible. Yesterday after hitting the lows of 186.49 versus the dollar, the PKR closed strongly at 185.6245.

Despite better exports, the Current Account Deficit has surged to alarming levels. We still need to look at the Agri sector and curtail needless imports, he added.

The PKR performed well against the other major currencies and reported gains in the interbank currency market today. It gained four paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED), Rs. 1.24 against the Canadian Dollar (CAD), Rs. 3.29 against the Pound Sterling (GBP), and Rs. 1.57 against the Euro (EUR).

Moreover, it gained 77 paisas against the Australian Dollar (AUD) in today’s interbank currency market.

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