Rupee Defies Expectations to Recover Against US Dollar Despite Surprises Last Night

The Pakistani Rupee (PKR) reversed losses against the US Dollar (USD) and posted gains in the interbank market today. It gained 10 paisas against the greenback after hitting an intra-day low of Rs. 176.4 against the USD during today’s open market session

It appreciated by 0.06 percent against the USD and closed at Rs. 175.67 today after losing 30 paisas and closing at 175.78 in the interbank market on Tuesday, 15 February.

Against market expectations, the rupee closed in the green against the dollar on Wednesday (today) despite Tuesday’s record-breaking increase in domestic petroleum prices. The Finance Division, in a statement, yesterday explained that the prices of petroleum products are showing a drastic increase in the international market and are presently at the highest level since 2014.

Reuters reported that oil prices recouped losses on Wednesday as investors weighed conflicting forecasts on the possible withdrawal of some Russian troops from around Ukraine amid tight global supplies and resurging fuel demand.

Discussing the local unit’s performance in a tweet earlier today, the former treasury head of Chase Manhattan Bank, Asad Rizvi, remarked that while oil prices have fallen, the unprecedented increase in domestic petroleum products will have a broad economic impact as well as a devastating impact on the logistics and transportation industries.

The PKR reversed its bad run against some of the other major currencies and reported gains in the interbank currency market today. It gained two paisas against both the Saudi Riyal (SAR) and UAE Dirham (AED) and 16 paisas against the Pound Sterling (GBP).

Conversely, it lost one paisa against the Canadian Dollar (CAD), 40 paisas against the Euro (EUR), and 31 paisas against the Australian Dollar (AUD) in today’s interbank currency market.

Source: Pro Pakistani