The Pakistani Rupee (PKR) fell against the US Dollar (USD) for the 17th consecutive day today, with street rates reaching as high as 271.
The PKR fell 0.09 percent against the US dollar, closing at Rs. 228.14 after losing 21 paisas. Before the close, it hit an intraday low of 228.725 against the US dollar.
The local currency was trading in the open market at 228.10 against the US dollar. By midday, the dollar had risen against the rupee.
After 1 PM, the local currency remained bearish, remaining at 228 against the top foreign currency before the interbank close.
The rupee fell against the US dollar today after the World Bank (WB) projected Pakistan’s GDP growth rate at 2% in the current fiscal year 2022-23.
According to money changers, the country’s currency depreciated by 14 percent between June and December due to low foreign exchange reserves and rising sovereign risk, and its country risk premium increased by 15 percentage points during the same period, citing World Bank projections.
Pakistan is facing increasing economic difficulties, while Sri Lanka remains in crisis. Improvements in living standards are expected to be slower in all regions over the next half-decade to 2024 than they were in 2010.
The country is implementing policy measures to stabilise macroeconomic conditions, allowing inflationary pressures to subside, and rebuilding to begin following the floods, but growth is expected to pick up to 3.2 percent in fiscal year 2023-24 (FY24), still falling short of previous projections.
In terms of exchange rate movements, some believe the PKR will end the week on a high note after some positive news from the UAE.
Globally, oil rose about 1% on Thursday, boosted by optimism about China’s demand outlook and expectations that upcoming US inflation data will show a slower rate increase.
Following the repeal of strict COVID-19 curbs, China, the world’s largest oil importer, is reopening its economy, raising hopes that demand for fuel will increase in 2023.
Brent crude was up $1, or 1.27 percent, to $83.72 per barrel at 4:25 PM, while US West Texas Intermediate (WTI) was also up, at $78.38 per barrel.
On Wednesday, both benchmarks rose 3%, fueled by hopes that the global economy’s outlook may not be as bleak as previously thought.
The market is also bracing for more Russian oil supply cuts as a result of sanctions imposed in response to Russia’s invasion of Ukraine. In the interbank market today, the PKR was weak against the majority of the other major currencies.
It fell one paisa against the Pound Sterling (GBP), five against the Saudi Riyal (SAR), six against the UAE Dirham (AED), seven against the Canadian Dollar (CAD), and 43 against the Euro (EUR). In today’s interbank currency market, it gained eight paisas against the Australian Dollar (AUD).
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