The Pakistani Rupee (PKR) reversed losses against the US Dollar (USD) and closed the week with gains during intraday trade today.
It appreciated by 0.14 percent against the USD and closed at Rs. 214.65 after gaining 30 paisas in the interbank market today. The local unit quoted an intra-day low of Rs. 215.125 against the USD during today’s open market session.
The local unit was bearish when trade resumed early in the morning against the greenback and traded at Rs. 214.65 in the open market at 10:21 AM. By midday, the greenback went as high as 215.125 against the rupee. After 2 PM, the local unit was trading below the 215 level against the top foreign currency before the interbank close.
The rupee ended its two-day losing streak against the dollar today after regaining some of its steam that was lost before the initial drop on Wednesday. Market experts maintain the rupee will build on the momentum after the country receives IMF funds, which will help to support the currency and increase foreign reserves.
So far this month, the rupee has gained 11 percent against the US dollar, outshining major global currencies. The rupee recovered sharply after plunging to a record low of 240 per dollar in late July, becoming the world’s worst performing currency. The rupee fell by 34 percent in July alone, the most in a single month in over five decades.
Additionally, money changers forecast the local unit to moderate toward consistent trends after the government finally appointed a State Bank Governor on Thursday. Interestingly, the top position was left vacant since May 2022, with Murtaza Syed working as Acting Governor since then.
Globally, oil prices reversed gains on Friday after two days of blanket gains and are heading for weekly losses as a rampant dollar and concerns about a global economic crunch offset near-term growth projections. Both benchmark crude futures are closing in for weekly losses of close to 3 percent as strong dollar growth has made oil costly for merchants holding other currencies.
Brent crude was down by 2.08 percent at $94.58 per barrel, while the US West Texas Intermediate (WTI) slid lower and went down by 2.02 percent to settle at $88.67 per barrel.
The PKR gained against the other major currencies in the interbank market today. It gained eight paisas against the Saudi Riyal (SAR), eight paisas against UAE Dirham (AED), 50 paisas against the Australian Dollar (AUD), 74 paisas against the Canadian Dollar (CAD), and Rs. 1.85 against the Euro (EUR).
Moreover, it gained Rs. 1.08 against the Pound Sterling (GBP) in today’s interbank currency market.
