The Pakistani Rupee (PKR) has been constantly posting losses against the US Dollar (USD) in the interbank currency market since the beginning of the current fiscal year.
Oil Prices Cause A Sudden Big Drop in Rupee’s Value Against the US Dollar
After its loss of 30 paisas against the USD on Monday that had caused it to jump over Rs. 158 to the USD boundary, the latter deepened the deterioration by 19 paisas on Tuesday and by 54 paisas on Wednesday against the greenback.
Today (8 July), it crossed the boundary of Rs. 159 to the USD as it continues to erode and closed at Rs. 159.33 to the USD as compared to Rs. 158.92 on Wednesday (7 July).
The PKR has lost Rs. 1.79 to the USD since 1 July on account of higher demand from importers and oil payments.
Asad Rizvi, the former Treasury Head at the Chase Manhattan Bank, said earlier in the day that the rupee had eased by one to two percent due to the demand for the USD, so it could gain strength today.
However, he added that the “global currencies are under pressure after FED’s Hawkish tone fearing early interest rate hike,” and that “due to higher oil prices it’s a double whammy for Asian economies that fear flight of capital”.
The PKR posted mixed results against the other major currencies in the interbank currency market today. It lost 41 paisas against the Euro and deteriorated by 47 paisas against the Pound Sterling (GBP). However, it improved by 88 paisas against the Australian Dollar (AUD), and by 92 paisas against the Canadian Dollar (CAD).
Rupee Under Immense Pressure as It Loses Big Against the US Dollar
It posted losses of 11.2 paisas and 10.9 paisas against the UAE Dirham (AED) and the Saudi Riyal (SAR) respectively in the interbank currency market today.
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