The Pakistani Rupee (PKR) held out against the US Dollar (USD) during intraday trade today.
It remained stable and closed at Rs. 221.65 after gaining one paisa against the greenback. The local unit quoted an intraday low of 222.01 against the greenback.
The local unit was stable in the morning against the greenback and resumed trade at 221.7 in the open market. By midday, the greenback moved marginally higher 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 remained stable against the US Dollar today after rising further for two consecutive sessions.
The government has decided to limit foreign currency bought per person and limited outflow to $50,000 per year with the aim of lowering the open market’s speculatively high dollar value. The daily currency purchase and outward remittance limit have been reduced by half, to $5,000, with a maximum annual ceiling of $50,000. The State Bank of Pakistan (SBP) will issue a notification relatively soon to modify the existing exchange company regulations and put these decisions into effect.
Money changers are of the view the central bank’s move may discourage importers who will likely explore the informal exchange to avoid a cap on profits as the greenback gains in value. Experts are of the view the market players are eyeing currency movements when former Prime Minister Imran Khan resumes his long march to the federal capital.
Globally, oil prices fell on Tuesday due to recession fears and worsening supply. COVID-19 outbreaks in China, the world’s largest crude importer, have raised concerns about a drop in fuel demand.
At 4:45 PM, Brent crude was down by 0.95 percent at $96.99 per barrel, while the US West Texas Intermediate (WTI) slid by 1.24 percent to settle at $90.65 per barrel. On Monday, both benchmarks reached their highest levels since August, amid reports that Chinese leaders were considering exiting the country’s stringent COVID-19 restrictions.
The European Union’s ban on Russian oil, imposed in response to Moscow’s invasion of Ukraine, is set to begin on December 5 and will be followed by a freeze on oil product imports in February. Moscow refers to its actions in Ukraine as a special operation.
The PKR was bearish against most of the other major currencies in the interbank market today. It lost 34 paisas against the Canadian Dollar (CAD), 95 paisas against the Australian Dollar (AUD), Rs. 1.56 against the Euro (EUR), and Rs. 3.76 against the Pound Sterling (GBP).
Conversely, it held out against the Saudi Riyal (SAR) and the UAE Dirham (AED) in today’s interbank currency market.
