The Pakistani Rupee (PKR) continued to grow against the US Dollar (USD) and posted big gains today.
It appreciated by 0.89 percent against the USD and closed at Rs. 217.97 after gaining Rs. 1.95 in the interbank market today. The local unit quoted an intra-day low of Rs. 221.93 against the USD during today’s open market session.
The local unit was bullish when trade resumed against the greenback and opened trade at 221.40 in the open market. By 10:15 AM, the greenback went as low as 217.50 against the rupee. By midday, the greenback went as high as 221.90 against the rupee. After 2 PM, the local unit rose and stayed at the 219-220 level against the top foreign currency before the interbank close.
The rupee continued its good run against the dollar for the twelfth consecutive day ahead of the State Bank of Pakistan’s (SBP) Monetary Policy decision.
The market was bullish after Finance Minister Ishaq Dar stated on Sunday that Pakistan will not seek debt restructuring from Paris Club creditor nations in order to restore market confidence following a credit rating downgrade by Moody’s. “We have decided not to go to the Paris Club,” Dar said at a press conference in Islamabad, adding that it was decided not to ask for restructuring in consultation with the premier.
For now, the Pakistani rupee looks like it will not tumble from its current levels against the US dollar, which has helped it gain nearly 4 percent in the previous week. However, research experts suggest the currency could fall soon as it is fairly obvious how sentiments have been dictating market trends since Dar took charge as the country’s top finance frontman.
Regardless, money changers say the rupee’s trend is expected to continue. Exporters were rushing to sell dollars before the local currency rose further. There are sufficient supplies on the market to meet importer demand.
Because the government appears to have controlled speculative trading, speculative activity had declined.
Globally, oil prices fell on Monday, capping a five-day winning streak, as investors focused on slowing economic activity in China, the world’s largest crude importer, reviving fears of a global recession and falling global fuel demand.
Brent crude was up by 0.59 percent at $97.34 per barrel, while the US West Texas Intermediate (WTI) soared by 0.44 percent to settle at $92.23 per barrel.
The slowing of China’s economy, the world’s second-largest oil consumer after the United States, adds to growing fears of a global recession caused by central banks raising interest rates to combat high inflation rates.
The PKR gained higher against the other major currencies in the interbank market today. It gained 51 paisas against the Saudi Riyal (SAR), 53 paisas against the UAE Dirham (AED), and Rs. 3.94 against the Euro (EUR).
Moreover, it gained Rs. 1.57 against the Canadian Dollar (CAD), Rs. 3.42 against the Australian Dollar (AUD), and Rs. 4.23 against the Pound Sterling (GBP) in today’s interbank currency market.