The Pakistani Rupee (PKR) crashed near its record-breaking low against the US Dollar (USD) and posted losses in the interbank market today.
It depreciated by 1.08 percent against the USD and closed at Rs. 200.6 after losing Rs. 2.14 in the interbank market today. The local unit hit an intra-day high of Rs. 197.45 against the USD during today’s open market session.
The rupee closed in red against the dollar for the second day in a row as outflows for scheduled oil payments put more pressure on the country’s import bill. Moreover, concerns over the next budget 2022-23, as well as the resurrection of the $6 billion International Monetary Fund (IMF) program, put pressure on the forex market.
Today’s sharp decline in the currency ledger was followed by a reversal in the rupee’s impetus on Friday when it fell 0.17 percent to settle at Rs. 197.92 against the greenback.
The PKR first edged beyond the 200 level on May 19, when there was more doubt about the restart of the IMF lending program than there is now. The local currency only rose when the government raised the price of petroleum items by Rs. 30 per liter as a result of withdrawing subsidies — one of the lender’s prevalent requests.
Global crude markets exploded during the day, rising as high as $120.04 after briefly peaking at $121.95 during early trade. The US West Texas Intermediate (WTI) settled at $119.5. Crude soared after Saudi Arabia raised crude prices for July and amid doubts that an increased OPEC+ monthly output target will help tackle the global supply crunch.
The PKR collapsed against the other major currencies in the interbank market today. It lost 56 paisas against the Saudi Riyal (SAR), 58 paisas against the UAE Dirham (AED), Rs. 1.96 against the Euro (EUR), and Rs. 2.03 against the Pound Sterling (GBP).
Moreover, it lost 70 paisas against the Australian Dollar (AUD) and Rs. 1.68 against the Canadian Dollar (CAD) in today’s interbank currency market.
