Today’s intraday session saw additional losses for the Pakistani Rupee (PKR) against the US Dollar (USD).
It lost Rs. 1.03 in today’s interbank market to settle at Rs. 219.41, depreciating by 0.47 percent against the USD. During today’s open market session, the local currency reached an intraday high of Rs. 214.50 versus the US dollar.
The local currency traded at yesterday’s 217–219 level in the open market at 10:12 AM. Trading had resumed early in the morning. The dollar’s value versus the rupee fell as low as 214.50 around lunchtime. Before the interbank closing, the local currency was trading at 219 versus the top foreign currency after 2 PM.
Despite encouraging news that the Qatar Investment Authority, one of the biggest and most renowned sovereign funds in the world, is considering investing $3 billion in Pakistan, the rupee fell against the US dollar for the fourth straight day today.
According to A. H. H. Soomro, an economist,
After a strong appreciation from Rs. 240 to Rs. 210 interbank, the situation is now correcting itself. The one-way trajectory had to be justified when speculators began to stake their bets on unsustainable levels below 200. Similar to this, the government’s decision to lift the import restriction despite the higher charges and the UAE’s requirement that travelers bring 5,000 dirhams with them when they arrive are reviving demand.
He continued, “The situation does seem under control and would normalize from next week onwards as the IMF pact opens the door for economic help from the UAE, Saudi Arabia, and Qatar.”
Throughout the day, markets were gloomy as money changers noted yet another dry outpouring of dollar sellers. As markets struggle with short-term uncertainty, experts claim that traders are once again stockpiling the top currency in anticipation of another hike.
In Khyber Pakhtunkhwa, where the rupee was trading between 230 and 235 to the dollar, the implementation of a significant regulatory tariff on 700 luxury goods has forced Pakistani traders to import goods through Afghan Transit Trade.
The International Monetary Fund (IMF) confirmed with the Finance Ministry that Pakistan’s economy will slow to around 3.5 percent due to deteriorating economic conditions, with average inflation reaching nearly 20 percent by the end of the current fiscal year due to currency depreciation and higher commodity prices. As a result, the local unit maintained its fourth consecutive fall.
The IMF board will meet next week to review Pakistan’s request for a $1.17 billion bailout and an extension of the program through June 2023, and it is anticipated that the new predictions will be presented to them. The lender will share macroeconomic framework estimates for the following few months after approval.
Concerns over a rising supply shortage due to impending blockades of Russian shipments, the potential for major producers to reduce output, and the partial shutdown of a US refinery contributed to the rise in oil prices on Thursday.
After Saudi Arabia’s energy minister said that OPEC+, the Organization of the Petroleum Exporting Countries, and its allies, may reduce supply to support prices, both crude oil benchmark contracts reached multi-week highs.
While US West Texas Intermediate (WTI) rose over $94 and up by 0.13 percent to close at $95.01 per barrel, Brent crude was up 0.40 percent at $101.6 per barrel.
In today’s interbank market, the PKR lost ground against the other major currencies. It suffered losses versus the Saudi Riyal (SAR), UAE Dirham (AED), Pound Sterling (GBP), Canadian Dollar (CAD), and Australian Dollar (AUD) of 24 paise, 28 paise, Rs. 1,55, Rs. 1,55, and Rs. 1,96, respectively (AUD).