Rupee weakens 17 paisas against dollar

KARACHI: The rupee fell 17 paisas against the dollar on Wednesday, owing to the import payments demand, especially after ease in the coronavirus lockdown, dealers said.

The exchange rate ended at Rs163.92 against the greenback, compared with Rs163.75 in the interbank foreign exchange market.

The value of the local currency is currently at a 10-month low against the dollar.

The currency dealers said the ease in the coronavirus restrictions had encouraged importers to place orders to their foreign suppliers.

They said the rising international oil prices were also another concern for the dollar demand in the local exchange market.

The import bill of the country registered a massive growth of 48 per cent in July 2021. The import bill was recorded at $5.43 billion during the month under review, compared with $3.67 billion in the same month of the last year.

Trade deficit of the country also widened 85.50 per cent, owing to high import bill.

The currency dealers said the ballooning trade deficit would put pressure on the balance of payments for the month.