Today’s intraday session saw additional losses for the Pakistani Rupee (PKR) against the US Dollar (USD).
It lost 22 paisas and declined by 0.10 percent, closing at Rs. 226.37. Before the market closed, it cited an intraday low of 226.625 vs the US dollar.
The local currency opened trading at 226.25 against the US dollar for the sixth day in a row. The dollar depreciated against the rupee by lunchtime. The local currency declined after 1 PM and remained at a level of 226 against the major foreign currency until the interbank closing.
In response to the Finance Minister Ishaq Dar’s enigmatic remarks on the country’s economic situation, the rupee reported losses versus the US dollar today.
According to Dar, the discrepancy between the interbank and open markets’ USD-PKR exchange rates has been adequately rectified. He remembered how the markets collapsed as soon as he got on the plane to Pakistan. “I hadn’t even accomplished as much as I did in 2014 or 1999. With a 1.5 rupee differential between interbank and open market rates, we were on the correct track.
Finance Minister Ishaq Dar played it cool by blaming the system for the mess, particularly the country’s declining foreign exchange reserves, while assuring investors that there was no danger Pakistan would default any time soon.
“How will a default occur? There is no possibility of Pakistan defaulting, Dar affirmed. He acknowledged that the nation is in a challenging situation, but he is confident that it would “survive” if things are handled correctly.
The country’s reserves are not $24 billion as they were in 2016, he said, and he is not to blame for that. “I’m not to blame. The system is flawed, and we must secure Pakistan’s advancement, according to Dar.
Since China is the world’s top oil importer, rising COVID-19 cases there have caused investors to be concerned that the country’s economic recovery and easing of pandemic restrictions will be hampered. This has led to a decline in oil prices globally on Wednesday. Both benchmarks had an early session decline of more than $1 per barrel after Tuesday’s three-week high on predictions of rising fuel demand.
Brent oil was trading at $84.06 a barrel at 5:00 PM, down $0.27 or 0.32 percent, while the US West Texas Intermediate (WTI) was also down, at $79.32 per barrel.
Prices decreased amid reports that Russia plans to stop selling oil to nations that follow a G7 price cap enacted on December 5.
In the interbank market today, the PKR was bearish relative to the majority of the other major currencies. It dropped versus the Australian Dollar (AUD) by four paisas, the UAE Dirham (AED) by six paisas, the Saudi Riyal (SAR) by nine paisas, and the Canadian Dollar (CAD) by 24 paisas (CAD).