The Pakistani Rupee (PKR) fell against the US Dollar (USD) for the 22nd day in a row today.
The PKR fell 0.10 percent, closing at Rs. 229.15 after losing 24 paisas. Before the close, it hit an intraday low of 230 against the US dollar.
The local currency was completely depreciated against the US dollar and opened trading at 229 in the open market. By midday, the dollar had risen to 230.175 against the rupee.
Before the interbank close, the local currency slowed its losses and remained in the upper 229 range against the top foreign currency after 1 PM.
The rupee fell against the US dollar today after the Kingdom of Saudi Arabia said it is looking into different ways to assist Pakistan but is not planning any grants or deposits for the time being.
After extending the term of a $3 billion deposit to boost its forex reserves late last year, Saudi Arabia’s finance minister, Mohammed Al-Jadaan, said his country is discussing with the World Bank and other institutions how it can be more creative in providing support to Pakistan.
According to currency traders, the rupee is currently on a one-way path toward its all-time low against the US dollar, a valuation that could be reached in the coming weeks or months.
Globally, oil prices fell about 1% on Thursday, extending losses from the previous day, as a surprise increase in US crude stocks, as well as fears of a recession fueled by disappointing US retail sales and output data, weighed on the market.
Brent crude was down $0.80, or 0.94 percent, to $84.18 per barrel at 4:10 PM, while US West Texas Intermediate (WTI) was also down, at $78.60 per barrel. Both had reached their highest levels since early December 2022 yesterday.
The larger-than-expected drop in US producer prices, retail sales, and manufacturing output last month raised concerns about the economic cost of rate hikes.
Furthermore, with rate hikes still on the table, the US dollar rose, weighing on oil demand by making it more expensive for those carrying other currencies.
Today’s interbank market saw the PKR fall against some of the other major currencies. It fell six paisas to the UAE Dirham (AED) and five paisas to the Saudi Riyal (SAR).
In today’s interbank currency market, it gained one paisa against the Pound Sterling (GBP), 74 paisas against the Euro (EUR), Rs. 1.60 against the Canadian Dollar (CAD), and Rs. 2.68 against the Australian Dollar (AUD).
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