KARACHI: Pakistani rupee declined by 20 paisas against the dollar in early trade at the interbank foreign exchange market on Wednesday.

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The dollar is being traded at the historic high of Rs176.99 at the opening of the interbank market. The exchange rate ended as the local currency hit a historic low of Rs176.79 on Tuesday December 7, 2021.

Currency dealers said that the local currency is declining against the greenback and not strengthening as it was expected due to widening trade deficit of the country, and the much awaited Saudi Fund failed to leave any positive impact on the local currency.

According to the official data of the Pakistan Bureau of Statistics (PBS) released on Monday, the import bill of the country surged 69.17 per cent to $33 billion during the first five months (July-November) 2021/22, compared with $19.47 billion in the corresponding months of the last fiscal year.

The large imports also widened the trade deficit sharply. The trade deficit during the months under review widened 112 per cent to $20.59 billion, compared with the deficit of $9.72 billion in the corresponding period of the last fiscal year.

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The buying and selling of the dollar at the open market was recorded at Rs177 and Rs178.6.