Rupee falls 23 paisas against dollar

KARACHI: The rupee fell 23 paisas against the dollar on Thursday, amid fears of further rise in the international oil prices after Russia attacked Ukraine, dealers said.

The exchange rate ended at Rs176.39 against the greenback from the previous day’s closing of Rs176.16 in the interbank foreign exchange market.

The dealers said the forex market remained volatile during the day after the Russian attack on Ukraine. They said the benchmark Brent crude had crossed over $100/barrel due to the conflict.

The surge in the international oil prices has a negative impact on the oil import bill of the country.

The oil bill surged 107 per cent to $11.7 billion during the first seven months (July-January) of the current fiscal year, compared with $5.64 billion in the corresponding months of the last fiscal year.

The depleting foreign exchange reserves have also put pressure on the local currency. The liquid foreign exchange reserves slipped $231 million to $23.49 billion by the week ended February 11, 2022, compared with $23.721 billion a week ago.

Similarly, the official foreign exchange reserves of the State Bank of Pakistan (SBP) fell $241 million to $17.096 billion by the week ended February 11, 2022, compared with $17.337 billion a week ago.

The rupee remained under pressure since the start of the current fiscal year. The local unit recorded a decline of Rs18.85, or 11.96 per cent, from Rs157.54 on June 30, 2021 to the current level of Rs176.39.

The local currency fell to the record low of Rs178.24 against the dollar on December 29, 2021.