Rupee hits record high of 172.78 against dollar

Shahnawaz Akhter Web Editor

18th Oct, 2021. 03:32 pm
Rupee

Rupee plunges to 174.19 against dollar. Image: File

KARACHI: The rupee touched a record low of 172.78 against the dollar in the interbank market on Monday, owing to the high demand for the foreign currency for external payments, dealers said.

The exchange rate recorded a decline of Rs1.6 in the rupee value against the greenback, compared with last Friday’s closing of Rs171.18 to the dollar in the interbank foreign exchange market.

The dealers said the demand for the dollar remained high on external payments pressure. Large import bill and corporate payments escalated the dollar buying during the day, they said.

The import bill of the country recorded an increase of 66.11 per cent during the first quarter (July–September) of 2021. The country has spent foreign exchange worth $18.75 billion during the first quarter of the current fiscal year, compared with $11.28 billion in the corresponding quarter of the last fiscal year.

The dealers said the rising international oil prices were also putting pressure on the local currency. The international oil prices jumped to $85.45 to a barrel in London trade.

The oil import bill is the major reason for the massive depreciation in the local currency. The oil import bill registered a phenomenal growth of 97 per cent to $4.59 billion during the first quarter of the current fiscal year, compared with $2.33 billion in the corresponding quarter of the last fiscal year.