Pakistani Rupee hits Rs 185 against US dollar in open market

Pakistani Rupee hits Rs 185 against US dollar in open market

[image: rupee dollar]

The Pakistani Rupee (PKR) continued its historic landslide against the US Dollar (USD) and reported losses in the interbank market today. The local currency lost 83 paisas against the greenback at the close of the session today.

It depreciated by 0.46 percent against the USD and closed at Rs. 183.48 today after losing 30 paisas and closing at Rs. 182.64 in the interbank market on Wednesday, 30 March. The domestic currency hit an intra-day low of Rs. 184.20 against the USD during today’s open market session.

The rupee crashed to another low against the dollar today despite a sharp decline in oil prices after news that the United States was considering a 180 million barrel release from its Strategic Petroleum Reserve, the largest in the entity’s 50-year history.

At the time of filing this report, Brent crude futures were down $6.06, or 5.34 percent, to $109.4 a barrel. U.S. West Texas Intermediate (WTI) futures fell $5.69, or 5.28 percent, to $102.1 a barrel, after touching a low of $100.16.

In terms of factors affecting exchange rate consolidation at home, the political pressure is growing on Pakistan’s incumbent government after key allies switched to the Opposition ahead of a no-confidence vote in the parliament. Added to this, the emergence of a ‘threat letter’ from diplomatic sources also dredged more fuel to the fire.

Discussing the local currency’s performance earlier during the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, remarked It’s very difficult to remark since uncertainty harms the economy. If there is a no-confidence vote, “resignation could follow and we could be heading for elections”.

He added, “Hope I am wrong because in such a situation financial market will be rattled”.

The PKR struggled against other major currencies and reported losses in the interbank currency market today. It lost 22 paisas against the UAE Dirham (AED), 23 paisas against the Saudi Riyal (SAR), 42 paisas against the Canadian Dollar (CAD), and Rs. 1.55 against the Euro (EUR).