Rupee Ends Fiscal Year 2021-22 With Gains Against US Dollar

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

It appreciated by 0.13 percent against the USD and closed at Rs. 204.85 after gaining 26 paisas 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. Since the regime change on April 11, the rupee has lost Rs. 22.50 against the dollar.

The rupee closed in green against the dollar today after the National Assembly officially approved the federal budget for the fiscal year 2022-23. Despite today’s positive close, it is noteworthy that the local currency had a year full of dramatic crashes with various economic indicators impacting its value against the greenback.

During the fiscal year 2021-22, the rupee fell to an all-time low of Rs. 211.93 against the dollar. During the outgoing fiscal year, the rupee lost 30 percent (Rs. 47.3) of its value against the US Dollar during the period, compared to the record high of Rs. 152.27 recorded in May 2021.

The rupee maintained a downward trend for the major part of 12 months, with bleak macros along with delays in various fiscal reforms and lending programs causing the forex market to be extremely bearish.

Globally, oil prices were mostly steady in volatile trading on Thursday as the market weighed worries over global supply against a build in US fuel product inventories.

Brent crude settled barely above $116, while the US West Texas Intermediate (WTI) dropped below $110 to test levels at $109.6 per barrel, shedding yesterday’s gains.

The PKR improved against the other major currencies in the interbank market today. It gained 38 paisas against the Australian Dollar (AUD), 73 paisas against the Canadian Dollar (CAD), Rs. 1.55 against the Pound Sterling (GBP), and Rs. 1.82 against the Euro (EUR).

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