Pakistani rupee reverses losses against greenback

After strengthening against the US dollar on Monday, the Pakistani rupee started the new week positively.

Discussions between Finance Minister Ishaq Dar and State Bank of Pakistan (SBP) employees and currency traders had positive effects as the local currency increased by Rs1.59, or 0.72 per cent, versus the dollar.

Interbank closing #ExchangeRate for todayhttps://t.co/9Imo431QCZ pic.twitter.com/I7K5pHr8yx

— SBP (@StateBank_Pak) October 31, 2022

In the interbank market, the rupee was able to settle at Rs220.89, according to the SBP.

The rupee last week dropped 0.93 per cent versus the dollar, trading at Rs222.47. Analysts predicted that this week will see range-bound trading in the local currency.

Earlier, Ishaq Dar issued a warning last week saying that anyone detected manipulating the currency rate will face harsh punishment.

Dar said that the rupee’s true worth in relation to the dollar is less than Rs200. He predicted that the rupee will soon strengthen against the dollar and gave a warning to those who were speculating in and hoarding foreign cash.

Furthermore, the price of Brent oil fell by 0.65 per cent to $95.15 per barrel on Monday, while the price of US West Texas Intermediate (WTI) fell by 0.83 per cent to $87.17 per barrel. With advances of 7.7 per cent and 9.3 per cent so far in October, respectively, Brent and WTI are on course to post their first monthly gains since May.

Europe, which is anticipated to experience a recession this winter, poses a threat to global oil consumption. The European Central Bank’s policymakers are also continuing with their plans to raise interest rates, despite the fact that doing so might plunge the region into recession and stoke political unrest.