Rupee sets another all-time low of 176.20 viz dollar

KARACHI: Pakistani rupee on Monday registered a new all-time low against the US dollar at 176.2 in the interbank market, breaking the previous low of 175.72.
According to the State Bank of Pakistan, the Pakistani rupee struggled against the dollar and shed 74 paisas (-o.42 percent) in the interbank market. The dollar opened at Rs175.46 and closed at Rs176.20. Within the open market, the rupee was traded at 177/178 per dollar.
The previous highest level of dollar of Rs175.73 was recorded on November 12, 2021. Overall, the local currency shed 22 paisas against the greenback during the last week. The rupee’s depreciation during the ongoing fiscal year 2021-22 has been Rs18.78 and Rs16.03 in the current year 2021.
Currency experts said that the rupee deteriorated because the dollar’s demand for import and corporate payments remained high during the day. The rupee was also under pressure as the market opened after two weekly holidays, they added.
However, some other experts termed the rupee depreciation surprising, especially in the backdrop of satisfactory performance of all the major economic indicators, the notable plunge in the international commodity prices and the latest positive statement by Advisor to the PM on Finance and Revenue Shaukat Tarin. They said that the ongoing depreciation may be a part of the International Monetary Fund (IMF) conditionalities.
The experts said that the large import bill of the country has kept the rupee under pressure. The import bill of the country recorded an increase of 65.40 percent to $25.1 billion during the first four months of the current fiscal year as compared to $15.17 billion in the corresponding period of the last fiscal year.
However, the rupee is likely to recover in the coming days as the State Bank of Pakistan (SBP) on Monday signed a deposit agreement with the Saudi Fund. – TLTP