Last Updated on: 28th June 2023, 08:09 pm
PAK Rupee Falls To A New Low Against The US Dollar As IMF, FATF, And Oil Prices Spark Panic
The Pakistani rupee (PKR) stabilized below its previous high against the US dollar (USD) and posted losses in the interbank market today.
It depreciated 0.63% against the dollar to close at Rs 205.16 after losing Rs 1.30 in today’s interbank market. The local entity hit an intraday high of Rs 203.75 against the USD during today’s open market session.
Today’s devaluation of the rupee was in line with market forecasts, with traders expecting the local currency to fall further if Pakistan fails to convince the International Monetary Fund (IMF) of the fiscal budget 2022-23.
Economic analyst A.H.H. Soomro told the media spokesperson: “IMF delay despite budget announcement worries markets. There will be a revised budget soon. We need a wink from the IMF before we see stability.”
On Monday, the lender’s resident representative, Esther Ruiz Pérez, told news media that “further steps will be needed to strengthen the budget and align it with the main objectives of the program.” The staff stand ready to continue to support the authorities’ efforts in this regard and more generally in implementing measures to promote macroeconomic stability.”
Other factors that are likely to have impacted the FX market include the Financial Action Task Force (FATF) meeting in Berlin, which is scheduled to begin operations today. The issues related to the Pakistan case will be discussed on June 15-16.
Global oil prices rose above $120 on Tuesday as the severe global supply crisis outweighed fears that demand could be hit by the recession. In addition, OPEC+ countries are struggling to meet their production quotas and Russia is facing boycotts of its crude because of the invasion of Ukraine.
Brent crude surged above $121 after briefly hitting a high of $123.21, while US West Texas Intermediate (WTI) traded above $121 a barrel.
Also Read: Pak Rupee Breaks All-Time Highs Against The US Dollar Amid Bumpy IMF Talks And Oil Slides
The PKR reversed gains against most major currencies in today’s interbank market. It lost 22 paisa against the Canadian dollar (CAD), 34 paisa against the Saudi riyal (SAR), 35 paisa against the United Arab Emirates dirham (AED), 62 paisa against the British pound (GBP) and 1.25 rupees against the euro (€).
In contrast, it is up 19 paisas against the Australian dollar (AUD) in today’s interbank foreign exchange market.
Also Read: Pak Rupee is Falling To a 9th Month Low Versus The US Dollar
