Rupee Stable Against US Dollar 2nd Day in a Row, Oil Prices Jump on OPEC News

The Pakistani Rupee (PKR) was stable against the US Dollar (USD) during intraday trade today.

It was stable at market close and halted movement at Rs. 223.95 against the greenback. The local unit quoted an intraday low of 224.58 against the greenback.

The local unit was all red in the morning against the greenback and opened trade at 224.2 in the open market. By midday, the greenback moved higher against the rupee. After 1 PM, the local unit was still bearish and stayed on the 223 level against the top foreign currency before stabilizing at the interbank close.

The rupee was stable against the US Dollar for the second consecutive day today. The Finance Division earlier confirmed receipt of $500 million from the Asian Infrastructure Investment Bank (AIIB), which supported market sentiments.

Money changers are of the view that a delay in the arrival of a tranche of the International Monetary Fund’s (IMF) Extended Funding Facility may weigh heavily on the rupee-dollar parity in the coming days.

Pakistan is struggling to reach a broader agreement with the IMF on a revised macroeconomic framework for the current fiscal year. The delayed talks may push back the release of the $1 billion tranche until the coming calendar year 2023.

Despite all issues, Ishaq Dar says the present government aims to successfully complete the IMF program and shared that the government will repay the international bonds on time. Further, there is no plan to approach Paris Club, and authorities are committed to honoring all of the financial commitments made by the present as well as previous governments with national and international financial institutions.

Globally, oil prices rose in Asian trade on Wednesday, supported by falling API crude inventory figures, a weaker dollar, and some optimism about China’s demand and economy. Gains were limited by the high likelihood that OPEC+ would maintain output at its upcoming meeting.

At 3:40 PM, Brent crude surged by $1.87 or 2.25 percent to reach $84.90 per barrel, while the US West Texas Intermediate (WTI) jumped by almost $1.6 to settle at $79.82 per barrel.

The market remains in implied volatility, with forward-month futures trading higher than immediate-month futures.

The PKR was bullish against most of the other major currencies in the interbank market today. It held out against the UAE Dirham (AED) and the Saudi Riyal (SAR), gained 48 paisas against the Euro (EUR), Rs. 1.59 against the Canadian Dollar (CAD), and Rs. 1.64 against the Pound Sterling (GBP).

Conversely, it lost six paisas against the Australian Dollar (AUD) in today’s interbank currency market.

  • Fake news. If rupee is stabilise then why there is a big difference in open market and interbank rates?
    The rupee is artificially controlled. And hundi hawala is at top rather than banking channels.

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