The Pakistani Rupee (PKR) soared against the US Dollar (USD) and posted gains today.
It appreciated by 0.08 percent against the USD and closed at Rs. 217.79 after gaining 17 paisas in the interbank market today. The local unit quoted an intra-day low of Rs. 217.84 against the USD during today’s open market session.
The local unit was all green when trade resumed against the greenback and opened trade at 217.40 in the open market. By 10:15 AM, the greenback went as low as 216.625 against the rupee. By midday, the greenback went as high as 217.80 against the rupee. After 2 PM, the local unit rose and stayed at the 217 level against the top foreign currency before the interbank close.
The rupee continued its good run against the dollar for the thirteenth consecutive day after the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) on Monday decided to keep the policy rate unchanged at 15 percent.
The PKR recovery can also be attributed to the central bank confirming yesterday that Pakistan has secured additional external flows commitments from the Asian Development Bank ($1.5 billion), United Nations (a little less than $1 billion), Asian Infrastructure Investment Bank ($500 million) and World Bank ($1 billion, subject to certain conditions).
Money changers say the rupee’s trend is expected to continue, at least until after Finance Minister Ishaq Dar returns from the US after a series of crunch talks with overseas creditors.
Globally, oil fell more than 1 percent on Tuesday, adding to losses of nearly 2 percent the previous session, as recession fears and a surge in COVID-19 cases in China raised concerns about global demand.
Brent crude was down by 2.14 percent at $94.13 per barrel, while the US West Texas Intermediate (WTI) slid by 2.41 percent to settle at $88.93 per barrel.
After spiking earlier in 2022, when Brent came close to a record high of $147 due to Russia’s invasion of Ukraine, oil has dropped sharply on economic fears.
Aside from those concerns, there was also concern about a further drop in Chinese demand. When it comes to global economic growth, warning after warning is being issued.
The PKR gained higher against the other major currencies in the interbank market today. It gained four paisas against the UAE Dirham (AED), five paisas against the Saudi Riyal (SAR), and 25 paisas against the Euro (EUR).
Moreover, it gained 99 paisas against the Australian Dollar (AUD), Rs. 1.20 against the Canadian Dollar (CAD), and Rs. 1.40 against the Pound Sterling (GBP) in today’s interbank currency market.
