Rupee falls 76 paisas on higher global oil prices

KARACHI: The rupee fell 76 paisas against the dollar on Monday, owing to a jump in the global oil prices and rising foreign currency demand for import payments, dealers said.

The exchange rate ended at Rs175.47 against the dollar from Friday’s closing at Rs174.71 in the interbank foreign exchange market.

The dealers said high oil prices in the international markets escalated the demand for the dollars. Oil prices were steady on Monday in seesaw trading, after hitting their highest in more than seven years on Ukraine-Russia tension. The benchmark Brent Oil was trading around $94/barrel.

Pakistan is the net importer of international oil to meet its domestic demand. The oil import bill of the country surged 113.40 per cent to $10.18 billion during the first half (July-December) 2021/22, compared with $4.77 billion during the same period of the last fiscal year.

The improved economic activities after two holidays had increased the domestic demand, the dealers said, adding that the domestic manufacturing and the export-oriented sector require imported raw material, which also put pressure on the local currency.

The rupee has been under pressure since the start of the current fiscal year. The local currency lost Rs17.93, or 11.38 per cent, against the dollar from Rs157.54 on June 30, 2021, to the present level of Rs175.47.

The open market recorded the buying and selling of the dollar at Rs175.80/177.30 at 3:50pm PST.