USD flight continues against PKR on third consecutive day

• The rupee closed at Rs158.42 against USD at the interbank markets, showing a decline of 98 paisas against the greenback.
• This is the third successive decline in the value of Pakistani rupee against US Dollar.

The US dollar maintained its rising trend against the Pakistani rupee at the currency markets on Wednesday due to fears of coronavirus and plunge in oil prices.

The rupee closed at Rs158.42 against USD at the interbank markets, showing a decline of 98 paisas against the greenback. This is the third successive decline in the value of Pakistani rupee against US Dollar.

Foreign investors sold some $174 million worth Market Treasury Bills in the first three days of this month (March 2020). Foreign investors, mainly from the US and the UK were heavily investing in government debt instruments particularly T-bills due to some improvement in the exchange rate and current account.

The rupee on Tuesday, extended overnight slide against the dollar, losing 85 paisas for buying and selling at Rs 157.35 and Rs 157.45 respectively, at interbank markets. Whereas at the open markets rupee gained 50 paisas in terms of the dollar for buying at Rs 156.00 and the national currency held the last level for selling at Rs 157.00. The rupee, however, halted slide against the euro for buying and selling at Rs 174.50 and Rs 176.50 respectively.

Meanwhile, oil prices have tanked by almost third after Riyadh’s unprecedented hike in crude supply that follows the collapse of talks between OPEC and other producers led by Russia - a grouping known as OPEC+ - which had sought to extend their joint efforts to curb supply beyond the end of March.