Rupee loses ground against US Dollar in the lead up to IMF Meeting

Rupee loses ground against US Dollar in the lead up to IMF Meeting

The currency of the Pakistani rupee (PKR) lost gains against USD. US Dollar (USD) and suffered losses in intraday trading today.

It fell to 0.57 percent over the USD and ended the day at 221.92 rupees. 221.92 after losing 1.25 rupees. 1.25 in the market for interbank transactions today. The local unit reported the intra-day low at Rs. 222.125 in comparison to the USD in today’s open trading session.

The local currency was bearish right from the start when trading resumed on a Monday morning, against greenback. The currency traded between 219 and 223 levels in the open market around 10:40 am. In lunchtime, the greenback was up to 219.75 for the dollar. At 2 pm the local currency traded at the 220-222 range against the most expensive foreign currency prior to the closing of the interbank market.

The rupee was slid in relation to the US dollar for the sixth time in a row today , as the ongoing flooding situation and the anticipation of the upcoming session of the International Monetary Fond’s (IMF) Executive Board, and the soaring dollar against other currencies on the world market put tension on the market for money.

The last session was the one in which the dollar was at the level of Rs. 230 on the open market , and at a rate of Rs. 220 for the Inter-Bank market that was about 220 rupees. 208 and the equivalent of Rs. 212 during the week prior. In a matter of days, the dollar gained the equivalent of Rs. 8.8 against its local currency in the inter-bank market as well as the currency gained Rs. 22 for the open market.

According to some experts and market sources there are numerous reasons that have led to the depreciation of the rupee. These include the removal of the ban on imports of high-end items, the smuggling and export of dollars into Afghanistan and hoarding of dollars.

It is crucial to point out that Pakistan has not yet received positive announcements by the IMF and, more important, a variety of debt service agreements with nations that are friendly are tied with the lending institution.

Also Read: IMF takes a firmer the stance on release of loan tranches

Oil prices in the world soared on Monday, extending the previous week’s gains due to the imminent OPECplus output cuts, conflict in Libya as well as a stronger US dollar forecast a grim future for oil markets around the globe. Saudi Arabia, the top OPEC producer, this week warned of possible production reductions, which sources believe could lead to an increase in the supply coming from Iran in the event that it concludes an agreement to make a nuclear deal to the West.

Brent crude was up 0.28 percent to $101.3 per barrel The US West Texas Intermediate (WTI) was above $90 and climbed by 0.74 percent, settling at $93.75 each barrel.

The price of crude oil has risen this year as well, with Brent nearing a record at $147 back in the month of March, as Russia’s incursion into Ukraine caused supply worries to grow. Since then, growing fears about high-interest rates as well as inflation and recession risk have put pressure on the price.

The PKR has reversed gains against a few others major currencies that are on the interbank market of today. It gained 64 paisas to the Canadian Dollar (CAD) as well as 1.33 against the Canadian Dollar (CAD), Rs. 1.33 for the British Pound (GBP) and also 1.56 or Rs. 1.56 in 1.56 against the Australian Dollar (AUD).

In contrast, it lost 23 paisas to it against the Euro (EUR) and 34 paisas in comparison to the UAE Dirham (AED) in addition to 34 rupees in the Saudi Riyal (SAR) in the current interbank market for currency.


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