The Pakistani Rupee (PKR) lost further against the US Dollar (USD) and posted losses during intraday trade today.
It depreciated by 0.37 percent and closed at Rs. 221.50 after losing 81 paisas against the greenback. The local unit quoted an intraday low of 221.225 against the greenback.
The local unit was all red 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 220.25 against the rupee. By midday, the greenback went as high as 221.20 against the rupee. After 1 PM, the local unit stayed bearish and stayed on the 221 level against the top foreign currency before the interbank close.
The rupee lost against the US dollar second day in a row despite inflows of $1.5 billion confirmed by the central bank last night.
Analysts attribute the ongoing political turmoil as a major factor driving sentiments in the market. The Pakistan Tehreek-e-Insaf (PTI) leader, Imran Khan, declared on Tuesday that a “long march” from Lahore to Islamabad would begin on Friday (October 28). Since then, money markets have been bearish.
The market is also facing a shortage of US dollars, with dealers struggling to ensure availability at a time when the rupee had only started recovering last week’s losses.
Globally, oil prices rose slightly on Thursday after rallying nearly 3 percent the previous session, as concerns about sluggish demand in China offset optimism from record US crude exports and a sign that recession fears are subsiding.
At 3:50 PM, Brent crude was up by 0.49 percent at $96.16 per barrel, while the US West Texas Intermediate (WTI) surged by 0.56 percent to settle at $88.40 per barrel.
Oil rose on Tuesday due to data showing record US crude exports, a positive sign for demand even as stocks rose, as well as weakness in the US dollar due to hopes that interest-rate hikes will become less aggressive. The dollar was near a more than one-month low against a basket of currencies, as investors hoped that the Federal Reserve of the United States would shift to less aggressive interest rate hikes.
A weaker dollar lowers the cost of oil for holders of other currencies and tends to reflect an increased investor appetite for risk assets.
Crude has fallen on economic concerns after surging earlier this year following Russia’s invasion of Ukraine, with Brent approaching its all-time high of $147 in March.
The PKR was bearish against all the other major currencies in the interbank market today. It lost 11 paisas against the Canadian Dollar (CAD), 22 paisas against the Saudi Riyal (SAR), 22 paisas against the UAE Dirham (AED), and Rs. 1.43 against the Pound Sterling (GBP).
Moreover, it lost 35 paisas against the Australian Dollar (AUD) and Rs. 1.52 against the Euro (EUR) in today’s interbank currency market.