Rupee touches new record low of Rs173.47 against dollar

KARACHI: The free-fall in the rupee continued on Wednesday, as the local unit depreciated to the new all-time low of Rs173.47 against the dollar, dealers said.

The exchange rate recorded a 69 paisas decline in the rupee value from last trading on Monday October 18, 2021 at Rs172.78 against the dollar in the interbank foreign exchange market.

The dealers said the market opened after a public holiday, which put pressure on the import payments demand.

Further, the reports of significant widening in the current account deficit also put pressure on the dollar demand.

The current account deficit ballooned to $3.4 billion during July-September 2021, compared with a surplus of $865 million in the corresponding period of the last fiscal year, the State Bank of Pakistan (SBP) reported.

The import bill showed a 66.11 per cent growth to $18.74 billion during the first quarter of the current fiscal year, compared with $11.28 billion in the corresponding quarter of the last fiscal year.

Higher import bill also widened the trade deficit by 102 per cent. The trade deficit swelled to $11.75 billion during July-September 2021, compared with the deficit of $5.81 billion in the same quarter of the last fiscal year.

The rupee is facing a continuous fall since the start of the current fiscal year. The local currency recorded a depreciation of Rs15.93, or 10.11 per cent, against the dollar, compared with the value of Rs157.54 against the dollar on June 30, 2021 with Rs173.47 as of October 20, 2021.