The Pakistani Rupee (PKR) crashed further against the US Dollar (USD) and posted heavy losses during intraday trade today.
It depreciated by 0.71 percent against the USD and closed at Rs. 229.82 after losing Rs. 1.63 in the interbank market today. The local unit quoted an intra-day low of Rs. 230.5 against the USD during today’s open market session.
The local unit was bearish since the opening bell and opened at 229.875 at around 10:03 AM. By midday, the greenback went as low as 230.1 against the rupee. After 2 PM, the local unit stayed in the 229-231 level against the top foreign currency before the interbank close.
The rupee closed in red against the dollar today seventh day in a row as dollar shortage, the impact of floods on the country’s crop yield, and the greenback’s excellent form (overall) piled more pressure on the PKR. The dollar index today remained close to the two-decade high that it reached on Wednesday last week.
Additionally, expectations that Pakistan’s import bill will rise even as aid arrives will likely keep the rupee under pressure as they did today.
Globally, oil prices reversed last week’s gains on Monday as Iranian nuclear talks appeared to take big blows, and an embargo on Russian oil shipments loomed with tight supply issues restricting merchants from meeting robust demand.
Brent crude was up by 1.12 percent at $93.88 per barrel, while the US West Texas Intermediate (WTI) went up by 1.01 percent to settle at $87.67 per barrel.
Last week, gains from a nominal supply cut by the Organization of Petroleum Exporting Countries and allies, including Russia, were offset by lockdowns in China, the world’s top crude importer. Regardless, global oil prices may rise toward 2022’s end as supply is expected to tighten further following the implementation of a European Union embargo on Russian oil in December.
The G7 is desperate to impose a price cap on Russian oil in order to limit Moscow’s rich oil export revenue following its invasion of Ukraine.
The PKR slid further against the other major currencies in the interbank market today. It lost 43 paisas against the Saudi Riyal (SAR), 44 paisas against the UAE Dirham (AED), Rs. 1.46 against the Canadian Dollar (CAD), Rs. 3.33 against the Pound Sterling (GBP), and Rs. 3.35 against the Euro (EUR).
Moreover, it lost Rs. 1.71 against the Australian Dollar (AUD) in today’s interbank currency market.
