Rupee slides to historic low against dollar

Rupee slides to historic low against dollar

Rupee slides to historic low against dollar
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KARACHI: The rupee declined 2 paisas to the dollar on Wednesday to the record low of Rs178.63 as the global oil prices remained high amid the Russia-Ukraine war coupled with the rising domestic demand for Ramazan.

The exchange rate ended at Rs178.63 dollar from the previous day’s closing of Rs178.61 in the interbank foreign exchange market.

The dealers said that the local currency remained under pressure as the demand for the dollar was seen from importers for commodity buying for Ramazan. The rising oil prices in the international markets are another factor for rupee depreciation, they added.

Pakistan’s oil import bill is linked with the international oil prices and any surge in the 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.

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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 to $11.6 billion during the first seven months of the current fiscal year.

The local unit recorded a decline of Rs21.07 or 13.37 per cent from Rs157.54 on June 30, 2021 to the present level of Rs178.61.

At the open market, the buying and selling of the dollar was recorded at Rs178.5 and Rs179.7 at 4:30pm PST.

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