The Pakistani Rupee (PKR) dropped further against the US Dollar (USD) and posted losses during intraday trade today.
It depreciated by 0.22 percent and closed at Rs. 222.41 after losing 49 paisas against the greenback. The local unit quoted an intraday low of 222.75 against the greenback.
The local unit was all red in the morning against the greenback and opened trade at 222.30 in the open market. By midday, the greenback moved higher against the rupee. After 1 PM, the local unit was red and stayed on the 222 level against the top foreign currency before the interbank close.
The rupee reported losses for the fourth consecutive day against US Dollar today as default risk continued to rise.
Money changers said the PKR is under pressure due to persistent importer dollar demand. Furthermore, a drop in foreign exchange reserves and ongoing political turmoil weighed heavily on the rupee’s sentiment.
They also said the current regulatory environment coupled with the sudden resumption in the clearance of letters of credit (LCs) had created sporadic shortages of the greenback as dollar sellers were spending more time looking for the top currency or simply hoarding it for profit.
In broader terms, markets were bearish with Pakistan’s benchmark 5-year Credit Default Swap (CDS) spiking on 15 November to 75.5 percent. The instrument has widened by over 19.29 percentage points in the last 24 hours and shows that investors have panicked amid the country’s foreign exchange reserves depleting by over $10 billion in the past 11 months.
Globally, oil prices rose on Wednesday, erasing earlier losses, but rising COVID-19 cases in China limited gains. Earlier in the session, both benchmarks fell more than $1.
At 3:45 PM, Brent crude was up by 0.71 percent at $94.53 per barrel, while the US West Texas Intermediate (WTI) was up by 0.44 percent to settle at $87.30 per barrel.
According to oil pipeline operators in Hungary and Slovakia, oil supply to parts of Europe via a section of the Druzhba pipeline was temporarily suspended on Tuesday. Reuters reported that the disruption coincided with an explosion in eastern Poland near the Ukraine border, which killed two people and raised the prospect of a spillover of the Russian-Ukraine conflict.
The PKR was bearish against the other major currencies in the interbank market today. It lost 35 paisas against the Canadian Dollar (CAD), 56 paisas against the Euro (EUR), 81 paisas against the Australian Dollar (AUD), and Rs. 1.91 against the Pound Sterling (GBP).
Moreover, it lost 13 paisas against the Saudi Riyal (SAR) and 13 paisas against the UAE Dirham (AED) in today’s interbank currency market.
Pathetically researched article.
1. What are your sources in regard to your surety about Pakistan defaulting ?
2. SBP Governor, has made it clear publicly that Pakistan will meet all its international, local, credit bearing default obligations.
3. How does the editorial board verify/ vet such news ?
4. Mind sharing the details that you have that corroborate the clickbait subject you used ?
They are paid PTI writers. So no need to waste your time and efforts here. They have an agenda and they want to see Pakistan defaulted so they can show that IK is great leader.
You are not pro Pakistani, you are anti pakistani. UK removed Pak from default threat list, MOF have confirmed they eill have enouhh FOREX to pay debts acxomulated by the last Govt. Shut ur mouth you agenda driven website
Lmao, if being pro Pakistani means ruining oneself financially then yeah, have fun playing this game.
They’ve confirmed it, but have you looked at their own publishings? Do you think the MOF would ever state they will be unable to fulfill their obligations and watch the systematic panic ensue? It’s their job to keep calm in the markets at whatever cost and usually that cost is lying to the people, I hope you guys are enjoying 40% + inflation average, they can manipulate their publishings but only to a certain extent, the country at this point at least has not secured enough funding to meet its debt obligations for the current fiscal year, that’s what the numbers state till now, and hence the talk of default.
Looks like either the writer was drunk or under table paid.
Its only matter of few months more that Pakistan Will default millions are below poverty and without food and clean water to drink,out of the Major cities the Roads are very bad ,no Electricity 15-18 a hours a day,most industry Is shut down, food prices have increased 20-50% most people are making less than 2 USA$ a day
The future of Pakistan Is bad its depends on Saudi Arabia and USA for Aid
And chinese are taking away all the foriegn Exchange
Pakistan Is in a debt trap with china and its going to get worse
The corruption Is at its highest with new goverment,imran Khan was much Better
The military runs the country and business
The rest Is run by criminals
Just a matter of few more months before Pakistan Is bankrupt
Pro PTI