The Pakistani Rupee (PKR) was bearish against the US Dollar (USD) and posted losses during intraday trade today.
It depreciated by 0.08 percent and closed at Rs. 225.12 after quoting an intraday low of 225.775 against the greenback before close.
The local unit was all red against the greenback and opened trade in the 225 range in the open market. By midday, the greenback moved lower against the rupee. After 1 PM, the local unit dropped and stayed on the 225 level against the top foreign currency the interbank close.
The rupee reported losses against the US Dollar today with informal rates still hovering around 255-270 against the greenback. Money changers said sentiments were squeamish after markets opened today, as Pakistan scrambles to find avenues for strengthening its external position with trade numbers showing a significant decline.
Pertinently, the government has borrowed $5.114 billion from multiple financing sources during the first five months (July-November) of the fiscal year 2022-23 (FY23) compared to $4.699 billion borrowed during the same period of the last fiscal year. Money changers believe these inflows have already been used and the country is back at the bottom.
Rising political uncertainty has put off chances of economic stability any time soon as the country’s two major provinces are expected to dissolve assembles by Friday this week.
Globally, oil prices surged on Tuesday, supported by a softer dollar and a US plan to restock POL reserves, but gains were offset by concerns over the impact of rising COVID-19 cases in top oil buyer China.
At 4:45 PM, Brent crude was up by $0.1 or 0.1 percent to reach $79.88 per barrel, while the US West Texas Intermediate (WTI) was also green at $76.19 per barrel.
Oil prices have been boosted by the United States’ announcement last week that it will purchase up to 3 million barrels of oil for the Strategic Petroleum Reserve following this year’s record release of 180 million barrels. A weaker dollar has also boosted prices, making oil more affordable for those who hold other currencies. Oil prices could rise further as physical markets tighten further due to supply constraints and stronger global demand.
The PKR was bearish against some of the other major currencies in the interbank market today. It lost four paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED).
Conversely, it gained five paisas against the Canadian Dollar (CAD), 50 paisas against the Euro (EUR), 76 paisas against the Pound Sterling (GBP), and 87 paisas against the Australian Dollar (AUD) in today’s interbank currency market.
