Rupee recovers two paisas against dollar

KARACHI: The rupee recovered two paisas against the dollar on Friday, as external payments demand kept the market under pressure, dealers said.

The exchange rate ended at Rs171.18 against the greenback from the previous day’s closing of Rs171.20 in the interbank foreign exchange market.

The rupee recorded an all-time low of Rs171.20 against the dollar on Thursday.

The dealers said high international commodity prices and the rising domestic demand after ease in the coronavirus cases escalated the demand for imported goods.

The import bill registered a sharp growth of 65 per cent to $18.63 billion during the first quarter (July–September) of the current fiscal year, compared with $11.28 billion in the corresponding quarter of the last fiscal year.

During the last few days, the State Bank of Pakistan (SBP) introduced various measures to discourage outflows of dollars; however, these measures failed to stop depreciation in the rupee value.

The local currency remained under pressure since the start of the current fiscal year. It lost Rs13.64, or 8.66 per cent, against the dollar from Rs157.54 on June 30, 2021 to Rs171.18 to-date.