Rupee drops 31 paisas against dollar

KARACHI: The rupee declined 31 paisas against the dollar on Tuesday, as international oil prices recorded a further rise, dealers said.

The exchange rate ended at Rs175.78 against the greenback, compared with the previous day’s closing of Rs175.47 in the interbank foreign exchange market.

The dealers said the upsurge in the international oil prices put pressure on the local currency.

The benchmark Brent crude hit a seven-year of $96.48 in the international market. The rising international oil prices would directly affect the import bill of Pakistan, as the country depends on the imported oil.

The oil import bill surged 113.40 per cent to $10.18 billion during the first half (July-December) 2021/22, compared with $4.77 billion in the same period of the last fiscal year.

The dealers said further escalation in the Russia-Ukraine standoff would push up the oil prices in the international markets.

The external inflows have supported the rupee to some extent. The State Bank of Pakistan (SBP) recently received over a billion dollars from the International Monetary Fund (IMF) and another a billion dollars under the Sukuk proceeds, which helped the central bank strengthen the foreign exchange reserves.

The total liquid foreign exchange reserves of the country increased $1.637 billion to $23.721 billion by the week ended February 4, 2022 as against $22.084 billion by the week ended January 28, 2022.

The official foreign exchange reserves of the State Bank of Pakistan jumped $1.61 billion to $17.337 billion by the week ended February 4, 2022, compared with $15.727 billion a week ago.

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs18.24, or 11.58 per cent, against the dollar from Rs157.54 on June 30, 2021 to the present level of Rs175.78.