In today’s interbank market, the Pakistani Rupee (PKR) reversed its upward trend versus the US Dollar (USD). At the completion of today’s session, the local currency had lost 42 paisas against the US dollar.
It lost 0.23 percent versus the US dollar Thursday, finishing at Rs. 185.87, after gaining 17 paisas and closing at Rs. 185.45 in the interbank market on Wednesday. During today’s open market session, the Indian rupee touched an intraday high of Rs. 185.05 against the US dollar.
After the International Monetary Fund (IMF) reduced Pakistan’s growth rate projection, the rupee reversed gains against the dollar today. Pakistan’s GDP growth is expected to decelerate from 5.6 percent in 2021 to 4 percent in 2022 and 4.2 percent in 2023, according to the lender’s newest study “Regional Economic Outlook Middle East and Central Asia, Divergent Recovery in Turbulent Times.”
Furthermore, the IMF forecasts 11.2 percent consumer price inflation in 2022, up from 8.9 percent in 2021. Inflation is expected to be 8.5 percent in 2022 and 10 percent in 2023, compared to 6.6 percent in 2021. Local supply-chain restrictions (Armenia, Kyrgyz Republic) and increased domestic demand (certain CCA countries, Pakistan) have exacerbated inflationary pressures in a few countries, according to the World Bank.
Oil prices remained above $100 globally, but fluctuated between positive and negative territory as traders assessed tightening Russian supplies and the potential of declining demand in China. Brent crude futures were trading above $105 a barrel at the time of writing, while US West Texas Intermediate (WTI) crude futures were trading around 102.3 a barrel.
Asad Rizvi, the former Treasury Head of Chase Manhattan Bank, tweeted earlier in the day about the local currency’s performance, saying that the undervalued PKR has continued to gain strength by inching up against the USD. The strengthening Rupee has little to do with economic confidence; rather, it is related to a reduction in political uncertainty.
In today’s interbank currency market, the PKR reversed gains versus most other major currencies and registered losses. It lost 40 paisas to the Australian Dollar (AUD), 58 paisas to the Pound Sterling (GBP), and 70 paisas to the Canadian Dollar (CAD) (CAD).
In today’s interbank currency market, it gained 11 paisas versus the Saudi Riyal (SAR) and the UAE Dirham (AED), and 52 paisas against the Euro (EUR).