During intraday trading today, the value of the Pakistani Rupee (PKR) weakened against the US Dollar (USD).
It lost 10 paisas (0.05%) versus the dollar and ended the day at Rs. 223.91. The local unit hit a low against the dollar at 224.35 throughout the trading day.
The morning started with a gloomy tone for the local currency versus the dollar, with trading beginning at a level of 224.2. The dollar fell against the rupee at lunchtime. The local unit remained in the negative versus the top foreign currency after 1 PM, hovering in the 222–224 range until the interbank closure.
The central bank’s position on the present limits on forex purchase and the usage of a bank account for cash-selling transactions of $2000 or more caused the rupee to fall against the US dollar for a second consecutive day today.
All sales of foreign currency against the rupee totaling $2,000 or more (or the equivalent in other currencies) were recommended by the central bank to exchange businesses last month to be completed via formal payment options, such as bank transfer/cheques from the customer’s personal bank account.
In addition to the above, today’s decline has been seen by currency traders as a proverbial aphorism to the political climate this month that has shaken markets. They also point to the postponement of Pakistan’s ninth review procedures at the International Monetary Fund (IMF) as a natural negative for dollar holders.
Importantly, the IMF has said that ongoing conversations and financial help from multilateral and bilateral partners are contingent on Pakistan’s early finalization of a plan to recover from severe floods.
More than a dollar was shaved off the price of a barrel of oil worldwide as the Group of Seven (G7) countries explored setting a price ceiling on Russian oil above where the crude grade is presently trading.
Brent oil maintained its prior day’s price of $85.41 per barrel at 3:35 p.m., while US West Texas Intermediate (WTI) rose $0.12 to $78.03 per barrel.