Rupee touches record low of Rs169.97 against dollar

KARACHI: The rupee continued to decline against the dollar on Tuesday, as the foreign currency made a new peak at Rs169.97 in the interbank foreign exchange market, dealers said.

The exchange rate went down 37 paisas to close at Rs169.97 against the greenback, compared with the previous closing of Rs169.60 in the interbank foreign exchange market.

Earlier, the rupee hit an all-time low of Rs169.60 against the dollar on Monday.

The dealers said that higher external payment put pressure on the dollar demand. They said the hike in the international oil prices remained one of the major reasons for the rupee depreciation.

According to reports, Brent crude futures gained $1.05, or 1.3 per cent, to $80.58/barrel on Tuesday, after reaching its highest since October 2018 at $80.75 earlier in the session.

The dealers said due to the quarter ending, the dollar demand from the corporate sector was also high. The foreign corporate entities operating in Pakistan send their profit and dividends to their parent companies abroad by the quarter-end.

The latest measures taken by the State Bank of Pakistan (SBP) to support the balance of payments position also failed to prevent the fall in the rupee value.

The central bank on September 23, 2021 revised the regulations related to consumer financing and prohibited financing for imported vehicles.

The currency dealers said high current account and trade deficits would keep the pressure on the dollar demand in the coming days.

The rupee has lost around Rs12.43, or 7.89 per cent, against the dollar since the start of the current fiscal year.