The Pakistani Rupee (PKR) is maintaining its positive run against the US Dollar (USD) and posted gains in the interbank market today. Although redundant, it gained one paisa against the greenback after hitting an intra-day high of Rs. 176.47 against the USD during today’s open market session.

It appreciated by 0.01 percent against the USD and closed at Rs. 176.41 today after gaining 28 paisas and closing at 176.43 in the interbank market on Tuesday, 1 February.

The rupee closed in the green against the dollar for the fifth consecutive day despite various inflationary factors threatening to impede fiscal progression. With oil prices dangerously closing in on political intervention territory and concerns about Russia-Ukraine tensions, Pakistan’s issue of high energy prices, coupled with a colossal circular debt, could pile more pressure on the exchange unit.

Brent crude prices were about $89 a barrel today, which is a little shy of the seven-year high of $91.70 observed last week, driven mostly because of geopolitical tensions.

Discussing the rupee’s near-term outlook earlier in the day, the former Treasury Head of Chase Manhattan Bank, Asad Rizvi, explained, “With Inflation hitting 13% (YoY) & 7MFY22 averaging 10.26%, it is surely heading higher by the FY end. [The issue of] higher oil prices is widening CAD & imports need to be curtailed or else pressure will exert on the fragile recovery which will increase [the] risk to the macro stability”.

The PKR struggled against some of the other major currencies and reported losses in the interbank currency market today. It lost 90 paisas against the Australian Dollar (AUD), 90 paisas against the Pound Sterling (GBP), and 47 paisas against the Euro (EUR).

Conversely, it gained 44 paisas against the Canadian Dollar (CAD) and held out against both the Saudi Riyal (SAR) and the UAE Dirham (AED) in today’s interbank currency market.

Source: Pro Pakistani