The Pakistani Rupee (PKR), which continues to grow against the US Dollar, posted record-breaking intraday gains today. It rose by the largest margin in years.
It rose by 4.19 percent to USD and closed at Rs. 228.80 after gaining Rs. Today, 9.58 on the interbank markets. An intra-day high of Rs. 958 was quoted by the local unit. During today’s open-market session, the USD was 226.15 The greenback has risen by Rs. since the regime change. 40.93 against PKR
On Wednesday, the rupee closed in green for the fourth consecutive session. After the International Monetary Fund on Tuesday confirmed that Pakistan had fulfilled all the requirements for approval of the combined 7th-8th review programs, the bulls took control of currency.
Today’s absolute gain by the local unit was PKR 9.59, 4.19 percent against the greenback. The PKR has fallen by 22.85% over the calendar year (CYTD). It is still at 33.44 percent, despite being up from CY21’s peak on 14 May.
Experts believe this upward trend could continue as the government’s steps to reduce bill imports have led to confidence. The rupee could rise as high as Rs. The top foreign currency is Rs. 210.
Today’s huge appreciation is a result of a $3 billion import deficit by Pakistan, which also pumped the markets. On a month-on–month (MoM basis), Pakistan’s imports fell 38.31 percent to US dollar $4.861 trillion in July 2022, compared with $7.880 billion in June 20,22. Although the numbers are worrying for an already struggling economy, Pakistan’s import bills have fallen by 38.31 percent to $4.861 billion in July 2022 (MoM) compared with $7.880 billion in June 2022. This is consistent with market projections that Pakistan will see a decrease of more than $2B in goods imported from abroad.
Oil prices worldwide fell Wednesday, with Brent crude oil falling below $100 for the first time since 25 Jul. This was ahead of a meeting of the Organization of the Petroleum Exporting Countries+ members. During this meeting, producers are expected to maintain output while limiting spare capacities and amid concerns about a slowdown of global growth, which could lead to a decrease in fuel consumption.
Brent crude fell 0.94 percent to US dollar $99.59 per bar, while US West Texas Intermediate (WTI), which was at $93.56 per bar, dropped 0.91 percent.
The PKR saw huge gains in comparison to the major currencies on the interbank market. It gained Rs. 2.58 against Saudi Riyal (SAR), R. 2.61 against UAE Dirham (AED), Rs. 6.44 against Australian Dollar (AUD), Rs. 7.37 against Canadian Dollar (CAD), Rs. 11.94 against Pound Sterling (GBP).