Rupee gains 3 paisas against dollar

KARACHI: The rupee gained three paisas against the dollar on Tuesday, amid a surge in dollar demand for import payments.

The exchange rate ended at Rs174.50 to the dollar from the previous day’s closing of Rs174.47 in the interbank foreign exchange market.

The dealers said that the dollar demand had climbed up due to the rise in the international oil prices. However, the local currency settled with the reports that the oil prices declined.

The benchmark Brent crude rose to $94 per barrel a day earlier, which was the highest since October 2014. However, the softening in tension between the US and Iran over the civil nuclear issue, contributed to oil settling at over $92.

Pakistan is the net importer of oil import and changes in the international prices directly impact the balance of payment of the country. The high international prices resulted in massive growth in the oil import bill during the first half of the current fiscal year.

The oil import bill surged by 113.40 per cent to $10.18 billion during the first half (July–December) 2021/2022, as compared with $4.77 billion during the same period of the last fiscal year.

The dealers said that overall sentiments in the current market was positive during the day due to the transfers of funds from the International Monetary Fund (IMF) and the Sukuk proceeds.