The Pakistani Rupee (PKR) dropped further against the US Dollar (USD) and posted losses during intraday trade today.
It depreciated by 0.05 percent and closed at Rs. 223.91 after losing 10 paisas against the greenback. The local unit quoted an intraday low of 224.35 against the greenback.
The local unit was initially bearish in the morning against the greenback and opened trade at 224.2 in the open market. By midday, the greenback moved lower against the rupee. After 1 PM, the local unit was red and stayed on the 223-224 level against the top foreign currency before the interbank close.
The rupee reported losses against US Dollar for the second consecutive day today after the central bank’s stance on the current restrictions on forex buying and the use of a bank account for cash sale transactions worth $2000 and above.
The central bank last month advised exchange companies that all foreign currency sale transactions of $2,000 or above (equivalent in other currencies) against the rupee should be conducted through official payment modes, such as bank transfer/cheques from the personal bank account of the customer.
Besides the above, money changers view today’s drop as an adage to this month’s political backdrop that has rattled markets. They also blame the delay in the International Monetary Fund’s (IMF) ninth review proceedings for Pakistan as a natural negative for dollar holders.
Pertinently, the IMF has said that the timely finalization of a plan by Pakistan to recover from devastating floods is essential to support the discussions and continuing financial support from multilateral and bilateral partners.
Globally, oil prices fell by more than $1 per barrel as the Group of Seven (G7) nations considered a price cap on Russian oil above where the crude grade is currently trading.
At 3:35 PM, Brent crude was stable at $85.41 per barrel, while the US West Texas Intermediate (WTI) was slightly up by 0.12 percent to settle at $78.03 per barrel.
Earlier today, oil prices fell with Brent crude falling near Monday’s levels following developments that Group of Seven (G7) nations were considering a price cap on Russian crude in the range of $65-70 per barrel, international media reported today.
Because the world’s major shipping and insurance companies are based in G7 countries, the price cap would make it extremely difficult for Moscow to sell its oil – its most valuable export, accounting for about 10 percent of global supply – at a higher price.
Conversely, other analysts have suggested that a higher price cap could also make it more appealing for Russia to continue selling its oil, lowering the risk of a global oil supply.
The PKR was bearish against the other major currencies in the interbank market today. It lost two paisas against the UAE Dirham (AED), three paisas against the Saudi Riyal (SAR), 52 paisas against the Canadian Dollar (CAD), Rs. 2.33 against the Euro (EUR), and Rs. 2.36 against the Australian Dollar (AUD).
Moreover, it lost Rs. 4.61 against the Pound Sterling (GBP) in today’s interbank currency market.