The exchange rate recorded a 41 paisas decline in rupee value from the previous closing on Friday March 25, 2022 at Rs181.78.

The dealers said that the local unit was under pressure because the market was open after two weekly holidays. Further, the falling foreign exchange reserves, volatile commodity prices in international markets and political uncertainty further depressed the rupee value.

Large external payments against foreign debts also had a negative impact on the rupee value. Pakistan’s foreign exchange reserves fell by $2.28 billion to $21.44 billion by March 18, 2022, compared with $23.72 billion as of February 4, 2022. The foreign exchange reserves of the country hit record high at $27.23 billion on August 27, 2021.

The ballooning current account deficit escalated the dollar value, as Pakistan’s current account deficit ballooned to $12 billion during the first eight months (July – February) 2021/22, against a surplus of $994 million in the corresponding months of the last fiscal year.

Although the current account deficit narrowed to $545 million in February 2022, compared with the deficit of $2.53 billion in January 2022, the scheduled external repayments are still a threat to the balance of payment.

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs24.64 or 15.65 per cent from Rs157.54 to dollar on June 30, 2021 to the current level of Rs182.19.

At the open market, the buying and selling of the dollar was recorded at Rs182 and Rs183.3 at 3:20pm PST.