The Pakistani Rupee (PKR) settled below its previous record low against the US Dollar (USD) and posted losses in the interbank market today.
It depreciated by 0.63 percent against the USD and closed at Rs. 205.16 after losing Rs. 1.30 in the interbank market today. The local unit hit an intra-day high of Rs. 203.75 against the USD during today’s open market session.
Today’s rupee depreciation was in line with market predictions, with traders expecting the local currency to fall further if Pakistan fails to persuade the International Monetary Fund (IMF) regarding the budget for the fiscal year 2022-23.
Economic analyst, A. H. H. Soomro, told ProPakistani, “Delay over IMF despite the budget announcement is giving jitters to markets. There will be a revised budget soon. We need an IMF nod before we see stability”.
On Monday, the lender’s resident representative, Esther Ruiz Perez, told ProPakistani that “additional measures will be needed to strengthen the budget and bring it in line with key program objectives. Fund staff stand ready to continue to support the authorities’ efforts in this respect and, more generally, in the implementation of policies to promote macroeconomic stability”.
Other factors that most likely impacted the forex market include the meeting of the Financial Action Task Force (FATF) in Berline, which will commence proceedings today. Matters pertaining to Pakistan’s case will be discussed on 15 and 16 June.
Globally, oil prices climbed back above the $120 level on Tuesday as the tight global supply crunch outweighed worries that demand would be impacted by recession. Moreover, OPEC+ nations are struggling to meet their production quotas and Russia faces boycotts on its crude due to its invasion of Ukraine.
Brent crude soared above the $121 level after briefly peaking at $123.21, while the US West Texas Intermediate (WTI) settled above $121 per barrel.
The PKR reversed gains against most of the other major currencies in the interbank market today. It lost 22 paisas against the Canadian Dollar (CAD), 34 paisas against the Saudi Riyal (SAR), 35 paisas against the UAE Dirham (AED), 62 paisas against the Pound Sterling (GBP), and Rs. 1.25 against the Euro (EUR).
Conversely, it gained 19 paisas against the Australian Dollar (AUD) in today’s interbank currency market.
