US Dollar Up 7th Day in a Row Against Rupee After ‘LegenDary’ News

The Pakistani Rupee (PKR) was all red against the US Dollar (USD) and posted losses during intraday trade today.

It depreciated by 0.22 percent and closed at Rs. 223.66 after losing 49 paisas against the greenback. The local unit quoted an intraday low of 224.35 against the greenback.

The local unit was bearish in the morning against the greenback and opened trade at 224 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 224 level against the top foreign currency before the interbank close.

The rupee reported losses for the seventh consecutive day against US Dollar today after Finance Minister Ishaq Dar quickly moved to dispel rumors of an impending default, stating that Pakistan would not seek an extension in the payment of a $1 billion Sukuk bond due next month. He also claimed a $6 billion reduction in the country’s external financing requirements compared to initial estimates.

Dar stated said that speculations were circulating that Pakistan would be unable to pay its $1 billion Sukuk bond on December 5. He said Pakistan never defaulted on a small amount except in 1971, and I want to state categorically that the bond will be paid, and there is no possibility of delay.

Money changers are skeptical of a near-term PKR recovery as many economic factors continue to put pressure on the market. There is a feeling that the rupee may fall below 230 against the greenback as early as November 30th.

Globally, oil prices fell to near two-month lows on Monday, having previously fallen by around $1 a barrel as supply concerns eased and concerns about China’s fuel demand and US dollar strength weighed on prices.

At 4:40 PM, Brent crude was down by 0.40 percent at $87.27 per barrel, while the US West Texas Intermediate (WTI) was down by 0.47 percent to settle at $79.70 per barrel.

Both benchmarks closed Friday at their lowest levels since September 27, extending losses for the second week, with Brent down 9% and WTI down 10 percent.

The PKR was bullish against most of the other major currencies in the interbank market today. It gained 59 paisas against the Canadian Dollar (CAD), Rs. 1.16 against the Australian Dollar (AUD), Rs. 1.27 against the Pound Sterling (GBP), and Rs. 1.52 against the Euro (EUR).

Conversely, it lost 13 paisas against the Saudi Riyal (SAR), and 13 paisas against the UAE Dirham (AED) in today’s interbank currency market.