Rupee falls for second straight day against dollar

Rupee falls for second straight day against dollar

Rupee falls for second straight day against dollar
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KARACHI: The rupee fell for the second straight day against the dollar on Friday as Russian attacks on Ukraine intensified.

The rupee fell 72 paisas against the dollar to close at Rs177.11 from previous day’s closing of Rs176.39 in the interbank foreign exchange market.

The Russian invasion of its neighbouring country escalated the oil prices in the international markets whose impact is directly seen on the local currency as Pakistan is a net importer of petroleum products.

The rupee during the last two days fell 95 paisas since the launch of Russian strikes, as a result the international oil prices touched around $103 per barrel.

Besides, the impact of high oil prices and the ballooning current account deficit also kept the rupee under pressure during the day.

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The country’s current account deficit (CAD) surged to its highest ever monthly deficit of $2.6 billion in January 2022 ($1.9 billion in December 2021) taking the CAD to $11.6 billion during the first seven months of the current fiscal year.

The experts said that scheduled repayments of the government for foreign debt had also pressured the rupee.

The liquid foreign exchange reserves of Pakistan declined by $264 million to $23.226 billion by the week ended February 18, 2022. The foreign exchange reserves of the country were $23.49 billion by the week ended February 11, 2022.

The official reserves of the State Bank fell by $289 million to $16.807 billion by the week ended February 18, 2022, as compared with $17.096 billion a week ago.

The rupee remained under pressure since the start of the current fiscal year. The local unit recorded a decline of Rs19.57 or 12.42 per cent, from Rs157.54 on June 30, 2021 to the present level of Rs177.11. The local currency fell to the record low at Rs178.24 against the dollar on December 29, 2021.

At the open market, the buying and selling of the dollar was recorded at Rs177.5 and Rs179 at 5:45pm PST.

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