The Pakistani Rupee (PKR) fell to a new all-time low versus the US Dollar (USD) today in the interbank market, posting losses. During today’s open market session, it lost 22 paisas versus the dollar after hitting an intra-day low of Rs. 179.70.
After losing 23 paisas and ending at 179.22 in the interbank market on Tuesday, 15 March, it depreciated by 0.12 percent against the US dollar and concluded at Rs. 179.44 today.
After reports that Saudi Arabia is considering pricing some of its oil sales in yuan, the rupee fell to a new all-time low against the dollar for the third day in a row, undermining the US dollar’s dominance in the global petroleum market and signalling yet another shift by the world’s top crude exporter toward Asia.
In light of these facts, some analysts believe that decreasing oil sales in a less stable currency like the yuan might threaten Saudi Arabia’s financial situation. The amount of oil sold and its market price would most likely decide the impact on Saudi Arabia’s economy.
Another group of notable economists, on the other hand, believes that shifting away from dollar-denominated oil sales will diversify the kingdom’s income base and lead to the Saudi Riyal (SAR) being tied to a basket of currencies, as Kuwait did years ago.
In a tweet earlier today, Asad Rizvi, the former treasury chief of Chase Manhattan Bank, commented on the local unit’s performance, saying that as oil prices plummeted, the Pakistani Rupee suffered. During live trading yesterday, it hit a new all-time low of 179.25 before closing at 179.2152. While governments are developing a plan to trade oil in Yuan/Ruble to obtain oil at a subsidy and avoid sanctions, “our strategist may have other ideas,” he said.
In today’s interbank currency market, the PKR battled against most other major currencies, reporting losses. It lost five paisas to the Saudi Riyal (SAR), six paisas to the UAE Dirham (AED), 34 paisas to the Pound Sterling (GBP), 69 paisas to the Australian Dollar (AUD), and Rs. 1.17 paisas to the Canadian Dollar (CAD).
In today’s interbank currency market, it gained 58 paisas versus the Euro (EUR).