Rupee Drops Further As Oil Prices and Politics Spoil Qatari Investment News

The Pakistani Rupee (PKR) dropped further against the US Dollar (USD) and posted losses during intraday trade today.

It depreciated by 0.46 percent against the USD and closed at Rs. 217.66 after losing Rs. 1 in the interbank market today. The local unit quoted an intra-day high of Rs. 221.75 against the USD during today’s open market session.

The local unit opened poorly when trade resumed early in the morning against the greenback and traded at Rs. 216.25 in the open market at 10:14 AM. By midday, the greenback went as high as 221.75 against the rupee. After 2 PM, the local unit was trading between the 216-217 level against the top foreign currency before the interbank close.

The rupee tumbled against the US dollar for the second consecutive day today after currency shortages and another hike in global oil prices spoiled news that Pakistan was expected to receive $2 billion from Qatar.

Money changers had another below-par business outing today ever since the UAE made it mandatory for Pakistani passengers to declare AED 5,000 at their arrival at Emirati airports. The recent move has resulted in a shortage of dirhams in Pakistan’s currency market and has increased the rates of the greenback.

Globally, oil prices soared on Tuesday after a good spell in the early hours of the day as the supply crunch moved back into focus as a result of Saudi Arabia suggesting the idea of OPEC+ output reductions to support prices and the forecast of a drop in US fuel inventories.

Oil has soared in 2022, approaching an all-time high of $147 in March after Russia’s invasion of Ukraine exacerbated supply concerns. Prices have since been weighed down by fears of a global recession, rising inflation, and weaker demand.

Brent crude was up by 1.57 percent at $97.99 per barrel, while the US West Texas Intermediate (WTI) stayed above $90 and went up by 1.88 percent to settle at $92.06 per barrel.

The PKR slid against most of the other major currencies in the interbank market today. It lost 27 paisas against the Saudi Riyal (SAR), 27 paisas against UAE Dirham (AED), 45 paisas against the Australian Dollar (AUD), 51 paisas against the Pound Sterling (GBP), and 70 paisas against the Canadian Dollar (CAD).

Conversely, it gained 51 paisas against the Euro (EUR) in today’s interbank currency market.

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