PKR at interbank gains Rs1.20

September 27, 2022 (MLN): The dollar in the interbank is trading around Rs233.85 witnessing an appreciation of 0.50% as of 11:30 AM, data from Mettis Global showed on Tuesday.

Currency markets seem to have taken news surrounding Ishaq Dar being appointed as the new finance minister of Pakistan positively.

However, the appreciation is unlikley to sustain since the rising value of the US Dollar in the international market against other global currencies increases risks of futher depreciation of the rupee against the greenback. 

A press release by OECD noted that the world economy in 2023 will slow down due to the impacts of Russia’s war on Ukraine on global commodity prices leading to hikes in policy rates across the world. With the US Federal Reserve continuing its inflation targeting, the US Dollar is expected to remain strong for the ongoing fiscal year which will limit any gains in the local currency.

Meanwhile, with $32 billion financing needs, higher international commodity prices and a slowdown in exports following the decline in large-scale manufacturing will put additional pressures on the PKR.

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