Rupee Recovers Big Against Major Currencies After IMF ‘Clarity’ Pumps Markets

The Pakistani Rupee (PKR) improved further against the US Dollar (USD) and posted gains in the interbank market today.

It appreciated by 0.85 percent against the USD and closed at Rs. 205.12 after gaining Rs. 1.75 in the interbank market today. The local unit hit an intra-day high of Rs. 204.50 against the USD during today’s open market session. Since 11 April, the greenback is up by Rs. 22.76 against the PKR.

The rupee closed in green against the dollar for the second day today after renewed optimism in the markets over the expected release of revised loan tranches by the International Monetary Fund (IMF). The greenback’s fall can be attributed to the possibility of the agency depositing two tranches of around $1.85 billion instead of a single principal tranche of around $1 billion.

The local unit also improved over reports that Pakistan is looking to import Russian oil despite immense pressure from the United States. The government has asked key oil refineries of the country for a detailed analysis regarding the option of importing crude oil from Russia, along with recommendations.

Russian crude is cheaper than the usual OPEC+ produce and many regional countries are either importing from Moscow or working on it. The PTI-led government had started due diligence on this process but could not move ahead due to “political interventions”.

Globally, oil prices soared for a fourth day on Wednesday with tight supply concerns offsetting worries about a weaker global economy.

Brent crude settled above $118, while the US West Texas Intermediate (WTI) stayed above $112 at $112.3 per barrel, adding to yesterday’s gains. Both benchmark contracts soared more than 2 percent on Tuesday as supply concerns due to Western sanctions on Russia overwhelmed fears that the demand may slow in a possible recession in the future.

The PKR improved against the other major currencies in the interbank market today. It gained Rs. 1.86 against the Canadian Dollar (CAD), Rs. 2.57 against the Australian Dollar (AUD), Rs. 3.40 against the Euro (EUR), and Rs. 3.95 against the Pound Sterling (GBP).

Moreover, it gained 45 paisas against the Saudi Riyal (SAR) and 47 paisas against the UAE Dirham (AED) in today’s interbank currency market.