Rupee falls 63 paisas on surging international oil prices

Rupee falls 63 paisas on surging international oil prices

Rupee falls 63 paisas on surging international oil prices
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KARACHI: The rupee fell sharply by 63 paisas against the dollar on Monday as oil prices touched $140 per barrel in the international market, dealers said.

The rupee ended at Rs178.13 to the dollar from last Friday’s closing of Rs177.50 in the interbank foreign exchange market.

The local currency is heading towards the all-time value. The rupee recorded the all-time low of Rs178.24 on December 29, 2021.

The dealers said that the foreign exchange market remained uncertain during the day due to highly volatile international oil prices.

The oil prices are gradually rising since the start of the Russia-Ukraine war on February 24, 2022. The benchmark Brent crude recorded $s140 per barrel, the highest level since 2008.

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Pakistan’s oil import bill is linked with the international oil prices and any surge in oil prices result in high import bill and depreciation in the local currency.

The import bill of the petroleum group recorded an increase of 107 per cent to $11.7 billion during the first seven months of the current fiscal year, compared with $5.64 billion in the corresponding months of the last fiscal year.

The dealers said that the rise in the import bill will also widen the current account deficit. 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 CAD of $11.6 billion during the first seven months of the current fiscal year.

The local unit recorded a decline of Rs20.58, or 13.07 per cent from Rs157.54 on June 30, 2021 to the present level of Rs178.13.

At the open market, the buying and selling of the dollar was recorded at Rs177.7 and Rs179.5 at 4:00pm PST.

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