Rupee Continues Good Run Against US Dollar 6th Day in a Row

The Pakistani Rupee (PKR) continued its impressive run against the US Dollar (USD) and reported gains in the interbank market today. The local currency gained 11 paisas against the greenback at the close of the session today. It appreciated by 0.06 percent against the USD and closed at Rs. 181.58 today after gaining 13 paisas and closing at Rs. 181.69 in the interbank market on Thursday, 14 April. The domestic currency hit an intra-day high of Rs. 181.00 against the USD during today’s open market session. The rupee closed in the green against the dollar for the sixth day in a row as speculative interest booked some profits in the United States ahead of a long weekend that starts later today. Moreover, oil prices edged higher on Friday as traders weighed news of a possible European ban on Russian oil imports against a larger-than-expected build in U.S. oil stocks and slowing refining activity in China. At the time of filing this report, Brent futures were up by $4 at $111 a barrel, while US West Texas Intermediate (WTI) futures were sitting comfortably at $107 a barrel. At home, the State Bank of Pakistan’s weekly report released on Thursday revealed that Pakistan’s total liquid foreign exchange reserves went down by $449 million (-2.6%) on April 8, 2022, to $17 billion, compared to $17.47 billion in the previous week. The SBP reserves decreased by $470 million to $10.85 billion (-4.1%), compared to $11.32 billion a week earlier. Discussing the local currency’s performance earlier during the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi commented that the SBP’s net reserves continue to decline, now accounting for over half of the total. It reached a high of $20.073 billion in August 2021. Because of the rising trade deficit, it is difficult to develop reserves. While oil is a hindrance, remittances are the most reliable source of capital and assistance. He also added, “PKR correction likely to continue”. Closing rates for PKR against other major currencies will be added soon.