The Pakistani Rupee (PKR) was all red against the US Dollar (USD) and posted losses during intraday trade today.
It depreciated by 0.13 percent and closed at Rs. 225.40 after quoting an intraday low of 225.425 against the greenback before close.
The local unit was all red against the greenback second day in a row 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 226 level against the top foreign currency before the interbank close.
The rupee reported losses against the US Dollar today with informal rates still hovering around 258-270 against the greenback.
Money changers are of the view that the government should reconsider its trade policies as thousands of people from neighboring countries visit frequently on a daily basis without a visa and smuggle US dollars without difficulty, causing a drop in the country’s foreign exchange and revenue. Due to the high premium offered in the black market, people purchase US dollars there and sell them in exchange for higher returns.
It is pertinent to mention that since April 2022, the size of the grey/illegal money markets has grown dangerously.
Pakistan’s external debt obligations are in excess of US$73 billion for the next 3 years against low forex reserves of US$6-8 billion. There is an urgent need for debt restructuring, arguably another IMF bailout.
Globally, oil prices surged on Wednesday after data showed a larger-than-expected draw in US crude stockpiles, but gains were limited by growing concerns about Chinese demand and a snowstorm expected to disrupt US travel, reported Reuters.
At 3:45 PM, Brent crude was up by $0.94 or 1.18 percent to reach $80.93 per barrel, while the US West Texas Intermediate (WTI) was also green at $77.03 per barrel.
Many developing countries are expected to experience heavy snow, causing flight delays and impassable roads during one of the busiest travel periods of the year, potentially reducing oil demand. Today, prices were also boosted by comments from Saudi Arabia’s energy minister, who said on Tuesday that OPEC+’s widely criticized decision to cut oil output was the correct one.
The PKR was bearish against all of the other major currencies in the interbank market today. It lost seven paisas against the Saudi Riyal (SAR) and eight paisas against the UAE Dirham (AED).
Moreover, it lost 15 paisas against the Australian Dollar (AUD), 23 paisas against the Pound Sterling (GBP), 68 paisas against the Euro (EUR), and 76 paisas against the Canadian Dollar (CAD) in today’s interbank currency market.
