The Pakistani Rupee (PKR) continued its fall against the US Dollar (USD) for the 17th consecutive day today, with rates out on the streets rising as high as 271.
The PKR depreciated by 0.09 percent against the USD and closed at Rs. 228.14 after losing 21 paisas. It quoted an intraday low of 228.725 against the greenback before close.
The local unit was all red against the greenback and opened trade at 228.10 in the open market. By midday, the greenback moved higher against the rupee. After 1 PM, the local unit was still bearish and stayed at the 228 level against the top foreign currency before the interbank close.
The rupee reported losses against the US Dollar today after the World Bank (WB) projected the GDP growth rate for Pakistan at 2 percent in the ongoing fiscal year 2022-23.
Citing the WB projections, money changers said the country, with low foreign exchange reserves and rising sovereign risk, has seen its currency depreciate by 14 percent between June and December, and its country risk premium increased by 15 percentage points over this same period.
Pakistan faces mounting economic difficulties and Sri Lanka remains in crisis. In all regions, improvements in living standards over the half-decade to 2024 are expected to be slower than from 2010-19. The country implements policy measures to stabilize macroeconomic conditions so that inflationary pressures dissipate, and rebuilding begins following the floods, but growth is expected to pick up to 3.2 percent in the fiscal year 2023-24 (FY24), still below previous projections.
Regarding exchange rate movements, some said the PKR will end the current week on a good note after some good news is expected from the United Arab Emirates.
Globally, oil rose about 1 percent on Thursday, boosted by optimism about China’s demand outlook and hopes that upcoming US inflation data will indicate a slower increase in interest rates. China, the world’s largest oil importer, is reopening its economy following the repeal of strict COVID-19 curbs, raising hopes that demand for fuel will increase in 2023.
At 4:25 PM, Brent crude was up by $1 or 1.27 percent to reach $83.72 per barrel, while the US West Texas Intermediate (WTI) was also green at $78.38 per barrel. Both benchmarks rose 3 percent on Wednesday, fueled by hopes that the global economy’s outlook may not be as bleak as previously thought.
The market is also bracing for a further reduction in Russian oil supply as a result of sanctions imposed in response to Russia’s invasion of Ukraine.
The PKR was bearish against most of the other major currencies in the interbank market today. It lost one paisa against the Pound Sterling (GBP), five paisas against the Saudi Riyal (SAR), six paisas against the UAE Dirham (AED), seven paisas against the Canadian Dollar (CAD), and 43 paisas against the Euro (EUR).
Conversely, it gained eight paisas against the Australian Dollar (AUD) in today’s interbank currency market.