RECORDER REPORT

KARACHI: A spectacular surge in oil prices took a toll on Pakistan's currency as the rupee fell further against the US dollar on Thursday, inching ever so close to its all-time low after a 0.12% fall in the inter-bank market.

As per the State Bank of Pakistan (SBP), the rupee closed at 177.83 after a day-on-day depreciation of 21 paisas or 0.12%. Its all-time low against the US dollar was recorded in December last year, when it closed at 178.24.

The decline comes as oil prices extended their rally on Thursday, as Brent charged towards $120 a barrel, its highest in almost a decade amid US sanctions targeting Russian refineries, disruptions to shipping and a fall in US crude stocks to multi-year lows.

Brent crude futures rose as high as $119.84 a barrel, the highest since May 2012. US West Texas Intermediate crude hit a high of $116.57, the loftiest since September 2008, and was at $116.41 a barrel, up $5.81, or 5.3%.

Meanwhile, Pakistan’s trade deficit continued to march upwards, widening by 22.1% on a year-on-year basis, jumping from $2.533 billion in February 2021 to $3.095 billion in February 2022, revealed the Pakistan Bureau of Statistics (PBS) data.

On a monthly basis, trade deficit narrowed by 9.6% from $3.427 billion in January 2022 to $3.095 billion in February 2022.

Giving his views on the latest trade figures, Asad Rizvi, ex-country head at Chase Manhattan, said the increase in exports helped reduce the trade deficit to $3.1 billion.

“But higher imports constitutes a bad sign due to fewer business days in February,” said Rizvi, adding that the impact of surging oil prices will be felt next month.

“Remittances will provide a clearer picture to determine the current account position,” he said.

Meanwhile, Fahad Rauf, Head of Research at Ismail Iqbal Securities Limited, projected the upcoming remittance figures to remain flat at $2.1 billion.

“The remittances are usually lower in February due to fewer working days. Bangladesh’s remittances have fallen 12% MoM in February 2022,” said Rauf.

“Considering Pakistan witnessed a sharp fall in January, we assume flat remittances at $2.1 billion for February 2022,” he said.

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 178 and 179, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 197.10 and 199, respectively.

Against UAE Dirham, the PKR lost 5 paisas for both buying and selling, closing at 48.27 and 48.75, respectively.

Against Saudi Riyal, the PKR lost 5 paisas for both buying and selling, closing at 46.90 and 47.35, respectively.

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Open Bid Rs 178.00

Open Offer Rs 179.00

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Interbank Closing Rates: Interbank Closing Rates For Dollar on Thursday.

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Open Bid Rs 177.70

Open Offer Rs 177.80

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RUPEE IN LAHORE: The Pak rupee depreciated its worth in the process of trading against the greenback and the British Pound on the local currency market on Thursday.

According to the local currency dealers, the short supply phenomenon of the greenback continued to prevail throughout the trading session which helped its appreciation for buying and selling at Rs 177.50 and Rs 178.50 against the overnight closing trend of Rs 177.20 and Rs 178.20, respectively.

Similarly, the rupee failed to sustain its day earlier recoveries and declined its worth against the pound sterling. Consequently, the pound’s buying and selling rates slid from Wednesday’s closing of Rs 235.50 and Rs 237.50 to Rs 236.50 and Rs 238.00, respectively, they added.

Copyright Business Recorder, 2022