The Pakistani Rupee (PKR) slid further against the US Dollar (USD) and posted losses during intraday trade today.
It depreciated by 0.57 percent against the USD and closed at Rs. 220.66 after losing Rs. 1.24 in the interbank market today. The local unit quoted an intra-day high of Rs. 216.40 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 between 216-219 level in the open market at 10 AM. By midday, the greenback went as low as 216.825 against the rupee. After 2 PM, the local unit was trading at the 220 level against the top foreign currency before the interbank close.
The rupee slid against the US dollar for the fifth consecutive day today. It has fallen by 2.75 percent and shed Rs. 6.01 in the last five trading sessions against the USD. Today’s slump comes despite the surprise Saudi announcement that the Kingdom will invest $1 billion in Pakistan.
The currency outlook looks fairly uncertain in the coming few weeks because of both global and domestic issues. According to the Finance Ministry’s Monthly Economic Update & Outlook Aug 2022, the economic outlook is surrounded by global and domestic uncertainties. Geopolitical tensions remain unabated, worldwide inflation remains high, interest rates show tendencies to rise, and the US dollar strengthens. Pakistan’s external environment is therefore facing increasing challenges.
On the domestic side, the government has taken necessary measures to comply with International Monetary Fund (IMF) requirements. These have further increased inflation, however, they will have a positive effect, alleviating the external financing constraints.
Globally, oil prices rose by almost $1 on Friday as fresh US data shunned recession concerns. Both crude oil benchmark contracts soared by nearly $1 in early trade after falling by about $2 on Thursday. Additional support came from developments that the Organization of Petroleum Exporting Countries (OPEC) was cutting output to offset the return of Iranian barrels to oil markets if Tehran strikes a nuclear deal with the West.
Brent crude was up by 1.60 percent at $100.9 per barrel, while the US West Texas Intermediate (WTI) stayed above $90 and went up by 1.28 percent to settle at $93.7 per barrel.
The PKR dropped further against the other major currencies in the interbank market today. It lost 33 paisas against the Pound Sterling (GBP), 33 paisas against the UAE Dirham (AED), 38 paisas against the Saudi Riyal (SAR), 40 paisas against the Australian Dollar (AUD), and 47 paisas against the Canadian Dollar (CAD).
Moreover, it lost 73 paisas against the Euro (EUR) in today’s interbank currency market.
