The Pakistani Rupee (PKR) halted losses against the US Dollar (USD) and posted marginal gains in the interbank market today.
It appreciated by 0.04 percent against the USD and closed at Rs. 207.91 after gaining eight paisas in the interbank market today. The local unit hit an intra-day low of Rs. 208.125 against the USD during today’s open market session.
The rupee closed in green against the dollar today after two days of consecutive losses ahead of today’s monetary policy announcement by the State Bank of Pakistan. The central bank is currently reviewing the economic indicators and their future trends to ascertain the policy rate. At present, the interest rate is 13.75 percent, which was raised by 150 basis points on May 23, taking the total increase to 400 basis points so far this year.
In July 2021, the policy rate was 7.25 after an increase of 25 bps. At the current policy rate of 13.75, the banking regulator looks set to raise its key policy rate by 125 basis points at its review today, as it attempts to counter the 13-year high inflation, according to an estimate of 10 economists and market watchers.
Globally, oil prices dropped in volatile trade earlier on Thursday, extending losses as investors grew more worried energy demand would slide further in a potential global recession.
Brent crude settled below $102 at $101.3 per barrel, while the US West Texas Intermediate (WTI) crude dropped as low as $98.53 a barrel before closing below $100 at $99.19 in the session for the first time since 11 April.
The PKR slid against some of the other major currencies in the interbank market today. It lost 22 paisas against the Australian Dollar (AUD), 27 paisas against the Canadian Dollar (CAD), and held out against the Pound Sterling (GBP),
Conversely, it gained two paisas against the Saudi Riyal (SAR), two paisas against the UAE Dirham (AED), and Rs. 1.29 against the Euro (EUR) in today’s interbank currency market.
