Rupee Slides Against Major Currencies As Oil Prices Rise Back Above $100 per Barrel

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

It depreciated by 0.33 percent against the USD and closed at Rs. 218.38 after losing 71 paisas in the interbank market today. The local unit quoted an intra-day low of Rs. 219.75 against the USD during today’s open market session.

The local unit was all red when trade resumed early in the morning against the greenback and traded at Rs. 216.275 in the open market at 10:32 AM. By midday, the greenback went as high as 219.75 against the rupee. After 2 PM, the local unit was trading between the 217-220 level against the top foreign currency before the interbank close.

The rupee slid against the US dollar for the third consecutive day today as global crude prices went back up $100 per barrel. Pressures also mounted as negative sentiments regarding the International Monetary Fund’s (IMF) upcoming executive meeting rattled money markets.

It is expected that the pressure on the PKR will remain until the lender’s imminent approval of dispersing $1.17 billion to Pakistan under its Extended Fund Facility (EFF) for the cash-strapped South Asian nation.

In terms of other pressures impacting the rupee’s progress in the near term, experts suggest the currency is falling not only because the dollar is strengthening globally, but also because of recent political developments at home, which are rattling markets and demotivating the investor.

Globally, oil prices soared on Wednesday, following Saudi Arabia’s recommendation this week that OPEC considers cutting output in response to a lack of liquidity in the crude futures market and concerns about a global economic slowdown.

Brent crude was up by 0.68 percent at $100.9 per barrel, while the US West Texas Intermediate (WTI) stayed above $90 and went up by 0.68 percent to settle at $94.38 per barrel.

The PKR dropped against the other major currencies in the interbank market today. It lost 17 paisas against the Saudi Riyal (SAR), 19 paisas against UAE Dirham (AED), Rs. 1.13 against the Canadian Dollar (CAD), Rs. 1.43 against the Australian Dollar (AUD), and Rs. 2.11 against the Pound Sterling (GBP).

Moreover, it lost Rs. 1.13 against the Euro (EUR) in today’s interbank currency market.

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