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Rupee kicks off week by shedding 53 paisas versus dollar

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KARACHI: Pakistani rupee started the week by losing 53 paisas (-0.31 percent) against the US dollar in the inter-bank on Monday as the greenback staged a broad-based rally globally.
According to the State Bank of Pakistan, the US dollar opened at Rs168.19 and closed at Rs168.72. Within the open market, the rupee was traded at Rs168.60/169.6 per dollar.
The Pakistani rupee shed Rs0.17 during last week against the US dollar, while depreciation during the fiscal year 2021-22 has been Rs11.28. The local unit has shed Rs8.45 against the US dollar in the current year 2021. The local currency has maintained a downtrend after it touched 22-month high of Rs152.27 in May 2021, losing a cumulative Rs16.41 in the past four months to date.
According to experts, the US Dollar Index hit new highs ahead of the Federal Open Market Committee (FOMC) meeting scheduled on Wednesday. The committee within the Federal Reserve System is charged with overseeing the open market operations.
They said the Pakistani market observed dollar’s increased demand for import and corporate payments, as the market opened after two weekly holidays. They said that data released last week by the State Bank of Pakistan (SBP) showing widening of the current account deficit also kept the pressure on the local unit. Pakistan’s current account deficit has widened to $2.29 billion during the first two months (July-August) of the current fiscal year. The current account had posted a surplus of $838 million in the same months of the last fiscal year.
They said the rupee is under immense pressure due to unfavourablemacro-economic data and Afghanistan’s situation. – TLTP