In the interbank market today, the Pakistani Rupee (PKR) finally rebounded against the US Dollar (USD) and registered significant gains.
It rose 1.13 percent versus the US dollar today, closing at Rs. 199.76 after gaining Rs. 2.25 in the interbank market. During today’s open market session, the local currency fell to an intraday low of Rs. 202.62 versus the US dollar.
On a week-over-week (WoW) basis, the Pakistani Rupee gained 0.19 percent versus the US Dollar. The rupee, on the other hand, has depreciated by 7.58 percent and 13.17 percent month-to-date (MTD) and calendar year-to-date (CYTD) respectively. The position for the fiscal year to date (FYTD) was down 26.79 percent.
After the government hiked the price of petroleum goods by at least Rs. 30 per litre on Thursday, the rupee finally ended its fifteen-day losing run versus the dollar. In a news conference, Finance Minister Miftah Ismail stated that the government made this tough decision in the national interest. He stated that imposing such a burden on the general population is a difficult decision for the government to make. He stated that the decision was made in order to resurrect the International Monetary Fund’s $6 billion bailout package (IMF).
The rise comes only one day after the government and the IMF failed to reach a deal on a financial bailout due to the former’s unwillingness to reverse fuel and power subsidies, causing budget uncertainty for fiscal year 2022-23.
Oil prices jumped 3% to a two-month high on signals of constrained supply as the European Union (EU) discussed proposals to prohibit crude imports from Russia with Hungary. Brent crude remained over $117 per barrel, but WTI crude in the United States encountered resistance at $113 per barrel.
In today’s interbank market, the PKR’s rebound versus other major currencies continues. It increased by 59 paisas against the Saudi Riyal (SAR), 61 paisas against the UAE Dirham (AED), Rs. 1.56 against the Euro (EUR), Rs. 1.02 against the Canadian Dollar (CAD), and Rs. 2.24 against the Pound Sterling (GBP) (GBP).
In today’s interbank currency market, it also gained 86 paisas versus the Australian Dollar (AUD).
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