The Pakistani Rupee (PKR) continued its fall against the US Dollar (USD) for the 18th consecutive day today, with rates out on the streets rising as high as 268.
The PKR closed at Rs. 228.15 after losing one paisa. It quoted an intraday low of 228.925 against the greenback before close.
The local unit was largely stable against the greenback and opened trade at 228.525 in the open market. By midday, the greenback moved higher against the rupee. After 1 PM, the local unit slowed losses and stayed at the 228 level against the top foreign currency before the interbank close.
The rupee reported losses against the US Dollar today despite news that the UAE had agreed to roll over the existing loan of $2 billion and provide a $1 billion additional loan.
Money changers viewed today’s close as the market’s reaction to the country’s forex reserves which dwindled by a massive $1.2 billion in one week. They also said the market snubbed reports that dollar restriction issues will be solved since the next six months are about saving inflows and curbing outflows. A broker told ProPakistani that traders do not expect today’s level of the artificially manipulated exchange rate to have an effect for much longer.
Globally, oil prices rose on Friday and were on track to rise more than 7 percent for the week, boosted by strong signs of demand growth in top oil importer China and expectations of less combative interest rate hikes in the United States.
At 4:30 PM, Brent crude was up by $0.72 or 0.86 percent to reach $84.75 per barrel, while the US West Texas Intermediate (WTI) was also green at $79.13 per barrel. Brent is up 7.6 percent this week, while WTI is up 7 percent, recouping most of last week’s losses.
Oil prices have also been supported by a drop in the value of the dollar to a nearly nine-month low, following data showing that US inflation fell for the first time in two and a half years, reinforcing expectations that the Federal Reserve will slow the pace of rate hikes.
A weaker dollar tends to boost demand for oil by making the commodity more affordable to buyers holding other currencies.
The PKR was bearish against most of the other major currencies in the interbank market today. It lost 78 paisas against the Canadian Dollar (CAD), Rs. 1.17 against the Pound Sterling (GBP), Rs. 1.59 against the Australian Dollar (AUD), and Rs. 1.88 against the Euro (EUR).
Conversely, it held out against both the Saudi Riyal (SAR) and the UAE Dirham (AED) in today’s interbank currency market.
