The Pakistani Rupee (PKR) once again crashed to a new low against the US Dollar (USD) and posted heavy losses in the interbank market today.
It depreciated by 1.97 percent against the USD and closed at Rs. 215.20 after losing Rs. 4.24 in the interbank market today, the highest single-day drop since 26 March 2020. The local unit quoted an intra-day low of Rs. 216 against the USD during today’s open market session. Since 11 April, the greenback is up by Rs. 32.24 against the PKR.
The rupee was hammered during intra-day trading on Monday, plunging to 216 after a roughly 2 percent drop versus the US dollar in the inter-bank market as political instability following the Punjab by-elections rattled markets.
Analysts say former Prime Minister Imran Khan’s victory in Sunday’s polls spurred calls for general elections, which later caused bears to take charge of currency trends. The vote on Sunday was also considered as a harbinger for national elections that must be conducted by October of next year, despite Khan’s campaigning around the country for an earlier poll since his ouster.
The by-elections for the 20 Punjab Assembly seats were critical because they would determine the destiny of Chief Minister Hamza Shahbaz. With 15 seats in hand, the PTI is poised to beat Hamza in the chief minister election recount on July 22.
Globally, oil prices soared on Monday boosted by a weaker dollar and tight supplies that offset concerns about a recession and the prospect of widespread COVID-19 lockdowns in China, which would reduce fuel consumption once more.
Brent crude was up by 2.13 percent at $103.3 per barrel, while the US West Texas Intermediate (WTI) gained on Friday’s momentum by 1.74 percent to $99.3 per barrel.
The PKR reversed reported losses against the other major currencies in the interbank market today. It lost Rs. 1.10 against the Saudi Riyal (SAR), Rs. 1.15 against UAE Dirham (AED), Rs. 6.65 against the Euro (EUR), and Rs. 7.60 against the Pound Sterling (GBP).
Moreover, it lost Rs. 4.95 against the Canadian Dollar (CAD) and Rs. 5.16 against the Australian Dollar (AUD) in today’s interbank currency market.
