KARACHI: The value of Iranian currency has witnessed a significant increase in Pakistan’s open market following reports of a memorandum of understanding between the United States and Iran, alongside easing global uncertainty and a decline in crude oil prices.
According to currency market data, the value of one crore Iranian rials has risen from approximately 2,000–3,000 Pakistani rupees to between 3,500 and 4,500 rupees within a short period.
As stated by Malik Bostan, Chairman of Exchange Companies Association of Pakistan, about 60 billion Iranian rials worth of 250 million Pakistani rupees were bought in the last two days.
He noted that demand for the Iranian currency has increased again after a gap of nearly three months, primarily driven by lower and middle-income buyers in the market.
Bostan recalled that a few months ago, following a ceasefire announcement by the US president, speculative buying had pushed the value of one crore Iranian rials to as high as 12,000 rupees. However, renewed tensions involving reported strikes led to a sharp decline in value, bringing it back down to 2,000–3,000 rupees.
He further advised investors to exercise caution, stating that only a memorandum of understanding has been reached so far, and exchange rate volatility is likely to continue until a final agreement is signed between the parties.
Market experts say that the true valuation of the Iranian currency will only become clear once a formal agreement between the United States and Iran is finalized.
Oil Prices Slide Sharply in Global Market
Meanwhile, Global crude oil prices continued their downward trend with both major benchmarks recording further declines amid ongoing volatility in international energy markets.
US benchmark crude, known as West Texas Intermediate, has declined by 1.79% to be valued at $79.36 per barrel while Brent crude, an international benchmark, has recorded a loss of 1.54% with the new value being $81.89 per barrel.
This decline is part of the steep fall of over 7% witnessed yesterday in international prices of oil.
Market analysts have attributed this continued trend to changing demand projections, overall economic uncertainties around the world, and expectations of supply adjustment among the top producers of oil.
This continuous fall in crude oil prices has increased hopes of possible decline in fuel rates in importing countries like Pakistan. According to market analysts, if this trend continues, fuel prices in Pakistan may go down in the next review period.
