Rupee Rings Alarm Bells After Crashing Against US Dollar Again

The Pakistani Rupee (PKR) crashed to another all-time low against the US Dollar (USD) and posted losses in the interbank market today. It lost 67 paisas against the greenback after hitting an intra-day high of Rs. 180.30 against the USD during today’s open market session. It depreciated by 0.38 percent against the USD and closed at Rs. 181.25 today after losing 49 paisas and closing at Rs. 180.57 in the interbank market on Friday, 18 March. Economic Analyst, A. H. H. Soomro, told ProPakistani, The rupee closed in red against the dollar for the sixth consecutive day today after oil prices jumped over $110 as European Union nations considered joining the United States in a Russian oil embargo. At the time of press, benchmark Brent crude futures surged to $112.4 a barrel, while the US West Texas Intermediate (WTI) crude made more gains and soared as high as $109.2 a barrel. At home, the Parliament is expected to convene on Friday on the subject of a no-confidence motion against Prime Minister Imran Khan, the lower house speaker’s office said on Sunday, heightening fears of political turmoil in the country. Discussing the local unit’s performance in a tweet earlier today, the former treasury head of Chase Manhattan Bank, Asad Rizvi, remarked that the dollar’s rising trend has sent the PKR to new lows of 180.70. On the other hand, the current account deficit in February fell to $545 million (JUL-FEB $12.1 billion). So, until the trade deficit narrows and there are significant payments in the pipeline, keeping greater levels of FX reserves will be difficult. The PKR struggled against other major currencies and reported losses in the interbank currency market today. It lost 18 paisas against both the Saudi Riyal (SAR) and the UAE Dirham (AED), 56 paisas against the Euro (EUR), 72 paisas against the Australian Dollar (AUD), and 84 paisas against the Canadian Dollar (CAD). Moreover, it lost Rs. 1.17 against the Pound Sterling (GBP) in today’s interbank currency market.