The Pakistani Rupee (PKR) slid to a new all-time low from the US Dollar (USD) and posted losses in the interbank market today.
It depreciated by 0.21 percent from the USD and closed at Rs. 211.93 after losing 44 paisas in the interbank market today. The neighborhood unit hit an intra-day a lot of Rs. 208 from the USD after briefly gaining Rs. 3.81 during today’s open market session. Since the arrival of the brand new government on 11 April, the greenback is up by Rs. 29.57 from the PKR.
The rupee slid to another low from the dollar today despite broad agreements reached between Pakistan and the International Monetary Fund (IMF) on the agency’s $6 billion bailout program, with the home side expecting the lender to boost the size and duration of the facility.
The neighborhood unit recovered by Rs. 3.80 to go as high as Rs. 208 from the greenback today at midday from Tuesday’s close of Rs. 211.8, before coming down. The dollar reached its all-time high yesterday, rising by Rs. 1.57.
Earlier, the IMF Resident Representative in Pakistan, Esther Perez Ruiz, said in a record, “Discussions between the IMF staff and the authorities on policies to strengthen macroeconomic stability in the coming year continue, and important progress has been made over the FY23 budget&rdquo.
Even though the broad agreement is in short supply of a staff-level pact, it could help soothe markets and end a four-month-long amount of uncertainty that took a huge toll on the country’s currency, unleashing a trend of inflation and eroding the confidence of markets and investors.
Globally, oil prices fell on Wednesday on news of a plan by the US to cut fuel costs for drivers and fears over a possible economic recession after recent central bank rate hikes. Oil prices often move around in tandem with stocks, which also took a winner across the globe as investors assessed how interest rate hikes designed to cool soaring inflation might impede an economic recovery.
Brent crude barely settled above $110.3, as the US West Texas Intermediate (WTI) settled below $105 at $104.8 per barrel.
The PKR reversed losses against the other major currencies in the interbank market today. It gained 56 paisas from the Canadian Dollar (CAD) and 75 paisas from the Euro (EUR), Rs. 1.41 from the Pound Sterling (GBP), and Rs. 1.55 from the Australian Dollar (AUD).
Conversely, it lost 12 paisas against the Saudi Riyal (SAR) and the UAE Dirham (AED) in the present interbank currency market.
