The Pakistani Rupee (PKR) continued its fall against the US Dollar (USD) for the 19th consecutive day today, with rates out on the streets rising as high as 266.5.
The PKR depreciated by 19 paisas and closed at Rs. 228.34 after losing 19 paisas. It quoted an intraday low of 229 against the greenback before close.
The local unit was all red against the greenback and opened trade at 228.725 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 the government’s decision to keep prices of petroleum products unchanged for the remainder of this month.
Money changers viewed today’s close as the market’s reaction to the decreasing rate of remittances received last month. Inward workers’ remittances in Pakistan, which is an important source of forex reserves for the country, have been on a declining trend in recent months.
Globally, oil prices remained near year highs on Monday as China eased COVID restrictions, raising hopes for a recovery in demand in the world’s top crude importer.
At 4:00 PM, Brent crude was down by $0.25 or 0.29 percent to reach $85.03 per barrel, while the US West Texas Intermediate (WTI) was also red at $79.72 per barrel. Both contracts gained more than 8% last week, the largest weekly gains since October after China abandoned the last vestiges of its zero-COVID policy by reopening its borders on January 8.
While China’s outlook has improved, it should be noted that the country’s oil demand will be gradually normalized. As things currently stand, China’s oil recovery is more anticipated than realized. Meanwhile, the Organization of Petroleum Exporting Countries and the International Energy Agency will release their monthly reports this week, which investors will closely monitor for global demand and supply forecasts.
The PKR was bearish against most of the other major currencies in the interbank market today. It lost two paisas against the Euro (EUR), four paisas against the Saudi Riyal (SAR), five paisas against the UAE Dirham (AED), 35 paisas against the Australian Dollar (AUD), and 87 paisas against the Pound Sterling (GBP).
Conversely, it gained seven paisas against the Canadian Dollar (CAD) in today’s interbank currency market.
Ishaq is still reluctant and facilitating black market to grow. People started keeping remittances abroad or bring back via “hundi hawala”