KARACHI
The value of the US dollar surged to an all-time high of Rs202.83 in the interbank market on Tuesday in an extremely volatile trading session that once saw the greenback trade at as high as Rs203.45. In intraday trade, the greenback rose by Rs2.77, or 1.37%, a day after it gained Rs2.14, or 1.07%, according to the State Bank of Pakistan. Meanwhile, in the open market US dollar after shedding Rs4, reached an all-time high of Rs204.5. Rising crude oil prices and a mounting oil import bill have increased pressure on the Pakistani rupee.
Brent price has stabilized at around 118, around 12% higher from March when it traded at around $98 a barrel.
The difference between Brent and Arab Light, the crude oil Pakistan imports from the Mideast has been narrowed to zero. Arab Light closed at $118.73 on Monday and Brent was trading at $118.73 on Tuesday.
A delay in the resumption of the IMF program for Pakistan has also dashed hope for immediate recovery of the rupee as the finance minister has indicated that an agreement with the Fund was likely only after the federal budget, set to be announced on June 10.
The rupee has been constantly under pressure since the beginning of economic recovery following the pandemic in the middle of 2021. The crude oil prices also began to rose at the same time, skyrocketing after the Russian invasion of Ukraine in February.
In April this year, Pakistan spent $2.223 billion on oil imports, 19.4% higher than imports in March when the country paid an oil imports bill of $1.861. =DNA
