The Pakistani Rupee (PKR) gained further against the US Dollar (USD) and posted gains during intraday trade today.
It appreciated by 0.12 percent and closed at Rs. 221.66 after gaining 25 paisas against the greenback. The local unit quoted an intraday low of 222.54 against the greenback.
The local unit was stable in the morning against the greenback and resumed trade at 221.125 in the open market. By midday, the greenback went as high as 222.125 against the rupee. After 1 PM, the local unit stabilized and stayed on the 221 level against the top foreign currency before the interbank close.
The rupee gained further against the US Dollar today for the second consecutive day today. The significance of the rupee not weakening despite the political turmoil faced by the nation weighs heavily on last week’s news that Pakistan was to receive relief in access of $13 billion from allies and international creditors.
Tresmark research indicates that forward swaps have returned to positive territory, showing adequate forex liquidity on a daily basis. However, in the middle of the week, the local unit was under pressure due to banks beginning to retire $100,000 worth of letters of credit, higher-than-expected inflation, a robust recovery of the US dollar index versus other major currencies, and an extremely volatile political situation.
Globally, oil prices fell more than $1 per barrel on Monday after Chinese health officials reiterated their commitment to a strict COVID containment strategy over the weekend, dashed hopes for a rebound in oil demand from the world’s leading crude importer.
At 3:25 PM, Brent crude was down by 0.43 percent at $98.15 per barrel, while the US West Texas Intermediate (WTI) slid by 0.53 percent to settle at $92.12 per barrel. Both benchmarks rose more than $1 on Wednesday, helped by another drop in US oil inventories, despite the US Federal Reserve raising interest rates by 75 basis points.
Despite the lack of any announced changes, Brent and WTI rose last week, rising 2.9 percent and 5.4 percent, respectively, on speculations of a possible end to stringent COVID-19 lockdowns.
The rise in the value of the US dollar is also weighing on oil prices, she added. Despite strong employment data, four Federal Reserve lawmakers indicated on Friday that they would still consider a smaller interest rate hike at their next policy meeting.
The PKR was bearish against most of the other major currencies in the interbank market today. It lost Rs. 1.28 against the Canadian Dollar (CAD), Rs. 1.43 against the Australian Dollar (AUD), Rs. 1.93 against the Pound Sterling (GBP), and Rs. 3.36 against the Euro (EUR).
Conversely, it gained six paisas against the Saudi Riyal (SAR), and seven paisas against the UAE Dirham (AED) in today’s interbank currency market.