The Pakistani Rupee (PKR) posted minimal gains against the US Dollar (USD), appreciating three paisas to stand at Rs. 178.12 against the greenback in the interbank market today. It hit an intra-day low of Rs. 178.65 against the USD during today’s open market session.
The PKR appreciated by 0.02 percent against the USD and closed at Rs. 178.12 today after it lost 10 paisas and closed at an all-time low of 178.15 in the interbank market on Wednesday, 22 December.
Although the local unit managed to halt the exchange spillover as various economic indicators consolidated in the past 24 hours supported by the US news that it is resuming aid to Afghanistan. However, the weight of expectations suggests that pressure will persist for the next few months due to little movement in commodity prices. Moreover, if the current account deficit remains between the $1.5-2 billion bracket during the period in question, the exchange rate could go through more hoops of fire.
Twisting the knife even further, it has been estimated by prominent authorities that Pakistan’s circular debt could plummet to levels as steep as Rs. 50 billion.
Globally, Reuters reported on Wednesday that oil prices surged following a larger-than-expected fall in US inventories, despite concerns over the spread of the Omicron variant’s impact on economic activity.
In light of the PKR’s interbank performance during the trading hours earlier today, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, stated, “Yesterday, [the] PKR settled at its weakest level after hitting yet another new low of 178.20. On June 30, [the] PKR closed at 157.5437. In CFY, it has tumbled 13.1%. This week despite OMICRON oil prices [which] surged by $5, & if measures are not taken to curb imports, [the] trade gap will bother.”
The PKR continued its declining trend against most of the other major currencies. It posted big losses of Rs. 1.57 against the Australian Dollar (AUD), Rs. 1.79 against the Pound Sterling (GBP), and 90 paisas against the Canadian Dollar (CAD).
It also posted losses of Rs. 1.09 against the Euro (EUR) in today’s interbank currency market.
Conversely, the rupee managed to halt any big movements against both the UAE Dirham (AED) and the Saudi Riyal (SAR) in today’s interbank currency market.
Source: Pro Pakistani