Rupee Breaks 7-Day Losing Streak Against US Dollar On ADB News

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

It appreciated by 0.05 percent and closed at Rs. 220.83 after gaining 11 paisas against the greenback. The local unit quoted an intraday low of 221 against the greenback.

The local unit was initially bearish in the morning against the greenback and resumed trade at 220.75 in the open market. By 10:15 AM, the greenback went as low as 220.89 against the rupee. By midday, the greenback went as high as 221 against the rupee. After 1 PM, the local unit recovered marginally but stayed on the 220-221 level against the top foreign currency before the interbank close.

The rupee reversed losses after seven days of consecutive drops. Today’s recovery comes after the Asian Development Bank (ADB) approved $1.5 billion in financing to help Pakistan provide social protection, promote food security, and support employment for its people amid devastating floods and global supply chain disruptions.

Money changers view today’s marginal uptick as a result of dollar inflows via ADB and the imminent removal of Pakistan from the FATF Grey List which will be finalized later in the evening. However, they advised caution over coming forecasts for coming weeks as factors like political turmoil and weak economic fundamentals continue to weigh strongly over the local unit’s day-to-day growth.

Globally, fell on Friday and was on track for a second weekly loss as investors assessed the impact of sharp interest rate increases on energy consumption, offsetting hopes for higher Chinese demand and output cuts by OPEC and its allies.

Brent crude was down by 0.10 percent at $92.31 down per barrel, while the US West Texas Intermediate (WTI) slipped by 0.17 percent to settle at $84.37 per barrel.

Brent, which hit an all-time high of $147 per barrel in March, is expected to fall 0.4 percent this week, while US crude is expected to fall more than 2 percent. Both benchmarks would be down for the second week in a row.

Oil prices briefly rose yesterday after reports that China was considering shortening the quarantine period for visitors to seven days. So far, Beijing has not issued an official confirmation in this regard.

The PKR recovered against the other major currencies in the interbank market today. It gained two paisas against the Saudi Riyal (SAR), three paisas against the UAE Dirham (AED), and 45 paisas against the Canadian Dollar (CAD).

Moreover, it held out against the Euro (EUR), gained one paisa against the Australian Dollar (AUD), and 88 paisas against the Pound Sterling (GBP) in today’s interbank currency market.