Dollar to PKR: The dollar rises to a fresh high of Rs178.19 against rupee

KARACHI: The rupee’s swift decline resumed on Tuesday, with the dollar hitting a fresh high of Rs178.19 after the close of the interbank foreign currency market, according to traders.

The currency rate fell two paisas versus the dollar in the interbank market from the previous day’s close of Rs178.17. The rupee’s previous record low was set on the previous day’s close.

Dollar demand remained strong, according to dealers, owing to year-end foreign currency needs for import and corporate payments.

By the conclusion of each quarter, foreign firms operating in Pakistan frequently remit their earnings and dividends to their parent companies overseas.

The State Bank of Pakistan (SBP) set restrictions on persons purchasing foreign currency on the open market last week. Due to rising demand for imports and business payments, the strategy seems to have failed to sustain the local currency.

To prevent speculative profits, the SBP set limits on persons purchasing foreign currency on the open market on December 19, 2021. Individuals are limited to purchasing a maximum of $10,000 per day and $100,000 per year, according to the rules.

The deepening of trade and current account deficits, according to traders, are also big challenges to the rupee’s stability.

Pakistan’s current account deficit grew to $7 billion in the first five months of the fiscal year 2021-22 (July-November). In the same time of the previous fiscal year, the current account had a $1.87 billion surplus.

The trade deficit increased 112% to $20.65 billion in the fiscal year under review, compared to $9.72 billion in the previous fiscal year’s comparable period.

Since the start of the current fiscal year, the rupee has been under pressure. From a low of Rs157.54 on June 30, 2021 to a high of Rs178.19 on December 28, 2021, the local currency decreased Rs20.65, or 13.11 percent.

At 3:20 p.m. PST, the open market buying and selling of the dollar were reported at Rs179.70/Rs181.10.

Source link

Leave a Reply