The Pakistani Rupee (PKR) reversed its losing streak against the US Dollar (USD) and posted massive gains in the interbank market today.
It appreciated by 2.22 percent against the USD and closed at Rs. 207.23 after gaining Rs. 4.70 in the interbank market today. The local unit hit an intra-day high of Rs. 206.75 against the USD after briefly gaining around Rs. 5 during today’s open market session. Since the arrival of the new government on 11 April, the greenback is up by Rs. 24.86 against the PKR.
The rupee finally ended its eight-day losing streak against the dollar in incredible fashion after Pakistan on Wednesday signed a $2.3 billion (RMB 15 billion) loan facility agreement with a consortium of banks from China, giving a boost to the country’s dwindling forex reserves.
The dramatic resurgence of the local currency also reflects progress with the International Monetary Fund (IMF) following the broad agreement on its $6 billion loan program. With the IMF and Chinese rollover packages in the bag, it can be said that Pakistan’s foreign exchange reserves have increased to more than $11 billion, enhancing the country’s ability to make foreign payments.
Globally, oil prices remained stable on Thursday as investors considered the chances of a recession and how increasing interest rates could influence fuel demand. Market players are contemplating how concerned they should be about central banks potentially driving the global economy into recession by raising interest rates to combat inflation.
Brent crude barely settled below $111, while the US West Texas Intermediate (WTI) stayed above $105 at $105.2 per barrel. Both benchmarks are down 3 percent and are at their lowest since mid-May.
The PKR reversed losses against the other major currencies in the interbank market today. It gained Rs. 3.38 against the Australian Dollar (AUD), Rs. 3.54 against the Canadian Dollar (CAD), Rs. 5.00 against the Euro (EUR), and Rs. 6.60 against the Pound Sterling (GBP).
Moreover, it gained Rs. 1.25 against the Saudi Riyal (SAR) and Rs. 1.27 against the UAE Dirham (AED) in today’s interbank currency market.