Rupee plummets to historic low of Rs175.73 against dollar

KARACHI: The rupee hit an all-time low of Rs175.73 against the dollar on Friday due to external payments pressure, dealers said.

The exchange rate went down Rs1.54 from the previous day’s closing of Rs174.19 in the interbank foreign exchange market.

The rupee on Friday witnessed a decline against the greenback for the fifth consecutive trading session. During the outgoing week, the local currency lost Rs5.72, or 3.36 per cent, against the dollar.

It witnessed some recovery in the value after falling to the lowest level of Rs175.27 on October 26, 2021. The recovery in the local unit may be attributed to the announcement of the Saudi government to support Pakistan in managing the balance of payments position.

The Saudi government pledged $3 billion on October 26, 2021 that was to be transferred directly to the State Bank of Pakistan.

A day ago, a Saudi diplomat in Pakistan said the cash transfer under the package would be made soon.

The rupee also witnessed deterioration due to a delay in the International Monetary Fund (IMF) programme. Large imports are continuously escalating the dollar demand.

The import bill registered a growth of 65.15 per cent to $25.06 billion during July-October 2021, compared with $15.17 billion during the same period of the last fiscal year, according to the Pakistan Bureau of Statistics.

The rupee remained under pressure since the start of the current fiscal year. It fell Rs18.19, or 11.55 per cent, from June 30, 2021 closing of Rs157.54 to the closing of Rs175.73 on November 12, 2021.

In the open market also, the rupee witnessed a decline in its value. The buying and selling of the dollar was recorded at Rs177/Rs178.50, compared with the previous day’s closing of Rs174.50/Rs176.50.