The Pakistani Rupee (PKR) finally recovered against the US Dollar (USD) and posted big gains in the interbank market today.
It appreciated by 1.13 percent against the USD and closed at Rs. 199.76 after gaining Rs. 2.25 in the interbank market today. The local unit hit an intra-day low of Rs. 202.62 against the USD during today’s open market session.
The Pakistani Rupee gained 0.19 percent against the USD Dollar on a week-on-week (WoW) basis. However, on a month-to-date (MTD) and calendar year-to-date (CYTD) basis, the rupee depreciated by 7.58 percent and 13.17 percent. The fiscal year-to-date (FYTD) position showed a decline of 26.79 percent.
The rupee finally broke its fifteen-day losing streak against the dollar after the government on Thursday suddenly increased the prices of petroleum products by at least Rs. 30 per liter. Finance Minister Miftah Ismail said in a press briefing that the government has taken this difficult decision in the larger interest of the national economy. He said that this is a hard decision for the government to impose such kind of burden on the general public. He said that the decision was made in a bid to revive the $6 billion Bailout program of the International Monetary Fund (IMF).
The increase comes just a day after the government and the IMF failed to reach an agreement on a financial bailout owing to the former’s reluctance to reverse fuel and electricity subsidies, and the resulting budget uncertainty for the fiscal year 2022-23.
In terms of global factors impacting the local state of affairs at home, oil prices soared about 3 percent to a two-month high on signs of tight supply as the European Union (EU) deliberated with Hungary over plans to ban crude imports from Russia. Brent crude stayed above $117, and the US West Texas Intermediate (WTI) crude formed resistance at $113 per barrel.
The PKR recovery also continued against the other major currencies in the interbank market today. It gained 59 paisas against the Saudi Riyal (SAR), 61 paisas against the UAE Dirham (AED), Rs. 1.56 against the Euro (EUR), Rs. 1.02 against the Canadian Dollar CAD), and Rs. 2.24 against the Pound Sterling (GBP).
Moreover, it gained 86 paisas against the Australian Dollar (AUD) in today’s interbank currency market.