Rupee At 228.66 Against US Dollar, 20th Consecutive Drop After Bad News from IMF

The Pakistani Rupee (PKR) continued its fall against the US Dollar (USD) for the 20th consecutive day today, with rates out on the streets rising as high as 267.

The PKR depreciated by 0.14 percent and closed at Rs. 228.66 after losing 32 paisas. It quoted an intraday low of 228.895 against the greenback before close.

The local unit was bearish against the greenback and opened trade at 228.225 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 upper 228 level against the top foreign currency before the interbank close.

The rupee reported losses against the US Dollar today after the International Monetary Fund (IMF) instructed Pakistan to fulfill another set of tough contingency prereqs in order to unlock the $1 billion bailout.

The IMF has requested a roadmap from Pakistan for the collection of Rs. 855 billion through the Petroleum Development Levy (PDL) until June 30, 2023. The lender has instructed Pakistan to take all steps to pave the way for a staff-level agreement and the release of a $1 billion tranche under the Fund’s Extended Fund Facility (EFF), local media reported today.

As a contingency measure of their own, exchange companies have proposed that the government raise US dollar rates for remittances in order to reduce currency price movements and boost remittances.

Globally, oil prices were mixed on Tuesday after China reported its second-weakest annual economic growth in nearly a half-century, though the country’s recent shift in COVID-19 policy bolstered hopes for a recovery in fuel demand this year.

At 4:15 PM, Brent crude was up by $0.64 or 0.76 percent to reach $85.10 per barrel, while the US West Texas Intermediate (WTI) was stable at $79.86 per barrel. The WTI benchmark in the United States was initially down 7 cents, or 0.1 percent, at $79.79, on track for its first daily loss since January 4 after reaching a high on January 3.

Oil prices were also pressured by a slight strengthening of the dollar from seven-month lows, making dollar-priced oil more expensive for buyers holding other currencies.

The PKR was bearish against most of the other major currencies in the interbank market today. It lost eight paisas against the Saudi Riyal (SAR), eight paisas against the UAE Dirham (AED), eight paisas against the Pound Sterling (GBP), and 23 paisas against the Euro (EUR).

Conversely, it gained eight paisas against the Canadian Dollar (CAD) and 12 paisas against the Australian Dollar (AUD) in today’s interbank currency market.