The Pakistani Rupee (PKR) stooped further against the US Dollar (USD) and posted losses during intraday trade today.
It depreciated by 0.02 percent and closed at Rs. 224.71 after losing one paisa against the greenback. It quoted an intraday low of 225 against the greenback before close.
The local unit was largely stable against the greenback and opened trade in the 224 range in the open market. By midday, the greenback moved higher against the rupee. After 1 PM, the local unit was bearish and stayed on the 224-225 level against the top foreign currency the interbank close.
The rupee reported losses against the US Dollar eighth day in a row today despite the International Monetary Fund’s (IMF) country representative saying talks to date with Pakistan have been “productive”.
Esther Perez Ruiz stated, “Discussions to date in the context of the 9th review have been productive, and have enabled a revision to the macroeconomic outlook post floods as well as an in-depth evaluation of fiscal, monetary, exchange rate, and energy policies adopted since the completion of the combined seventh and eight reviews.
Money changers say markets have slowed the drop with the default fever cooling down in the past few days. Pakistan’s benchmark 5-year Credit Default Swap (CDS) declined significantly on 14 December by a whopping 3,168 basis points to 58.8 percent, which is still quite high. The ongoing bond market crunch has been compounded by the maddening uncertainty in Pakistan’s external liquidity and funding conditions. So far, Pakistan has received only around $4 billion during the first five months of FY23, compared to a gigantic full-year target of approximately $34-38 billion.
Globally, oil prices were relatively steady on Wednesday, as bearish signals from data indicating an unexpected build in US crude inventories met OPEC and International Energy Agency forecasts of oil demand rebounding over 2023. (IEA).
At 4 PM, Brent crude soared by $0.72 or 0.89 percent to reach $81.40 per barrel, while the US West Texas Intermediate (WTI) was still also green at $76.14 per barrel.
The inventory data tempered the previous session’s bullish sentiment, which was based on expectations for a rebound in Chinese demand with the relaxation of COVID-19 restrictions and a weakening dollar after data showed U.S. inflation easing.
The PKR was bearish against the other major currencies in the interbank market today. It held out against both the UAE Dirham (AED) and the Saudi Riyal (SAR) and lost Rs. 1.57 against the Australian Dollar (AUD).
Moreover, it lost 79 paisas against the Canadian Dollar (CAD), Rs. 1.54 against the Euro (EUR), and Rs. 1.80 against the Pound Sterling (GBP) in today’s interbank currency market.