Rupee gains two paisas against dollar

KARACHI: The rupee gained two paisas against the dollar on Thursday on easing international oil prices, dealers said.

The exchange rate ended at Rs174.87 to the dollar from the previous day’s closing of Rs174.89 in the interbank foreign exchange market.

The dealers said that the local currency slightly recovered after the international oil prices showed a decline during the past two days.

The benchmark Brent crude was trading at around $91.89 per barrel at 3:30pm PST falling from $94.

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

The dealers said that the market witnessed dollar demand for import payments. However, the positive sentiments related to the inflows of funds helped the local unit to maintain stability.

During the past week, the country received over a billion dollars from the International Monetary Fund (IMF) and another $1 billion transferred as Sukuk proceeds.

The rupee remained under pressure since the start of the current fiscal year. The local currency lost Rs17.33, or 11 per cent, against the dollar from Rs157.54 on June 30, 2021 to the present level of Rs174.87.

In the opening market buying and selling of dollars was recorded at Rs175.90/Rs177.30 at 3:30pm PST.