Rupee plunges to Rs174 against US dollar on October 22, 2021

Rupee plunges to Rs174 against US dollar on October 22, 2021

Rupee plunges to Rs174 against US dollar on October 22, 2021

The USD rate in Pakistan today – File: Photo

Advertisement

KARACH: The rupee plunged to a new record low of 174 against the dollar on Friday, dealers said.

The exchange rate recorded four paisas decline in the rupee value against the greenback from the previous day’s closing of Rs173.96 in the interbank foreign exchange market.

The dealers said the demand for the dollar remained high, owing to the widening of the current account and trade deficits. Further, the massive reduction in official foreign exchange reserves of the State Bank of Pakistan (SBP) reported a day ago.

The official foreign exchange reserves of the State Bank recorded a decline of $1.646 billion to $17.492 billion by the week ended October 15, 2021, compared with $19.138 billion by the week ended October 8, 2021.

The SBP attributed the decline in the foreign exchange reserves to external debt repayments, which included repayment of $1 billion against the Pakistan International Sukuk.

Advertisement

The current account deficit ballooned to $3.4 billion during July–September 2021, compared with a surplus of $865 million in the corresponding period of the last fiscal year, the SBP said.

The import bill showed a 66.11 per cent growth to $18.74 billion during the first quarter of the current fiscal year, compared with $11.28 billion in the corresponding quarter of the last fiscal year.

Higher import bill also widened the trade deficit by 102 per cent. The trade deficit swelled to $11.75 billion during July–September 2021, compared with the deficit of $5.81 billion in the same quarter of the last fiscal year.

The rupee is facing a continuous fall since the start of the current fiscal year. The local currency recorded a depreciation of Rs16.47, or 10.45 per cent, against the dollar, compared with the value of Rs157.54 against the dollar on June 30, 2021 with Rs174 as of October 20, 2021.

(Disclaimer: The currency exchange rates by Bolnews.com have been obtained from various sources of the money market. The rates are only for information and are not intended as a suggestion or recommendation to trade. The exchange rates are subject to fluctuation during the day. Therefore, the rates given above may vary at any other during the day.)

Advertisement
Advertisement
Read More News On

Catch all the Business News, Breaking News Event and Latest News Updates on The BOL News


Download The BOL News App to get the Daily News Update & Follow us on Google News.


End of Article

Next Story