Dollar touches historic high at midday in interbank market

KARACHI: The Pakistani rupee plunged to a historic low, as the dollar crossed Rs177 at midday in the interbank exchange market on Wednesday.

The local currency declined 56 paisas against the greenback, which is being traded at the historic high of Rs177.35 at midday.

The exchange market closed at the historic low of Rs176.79 on Tuesday, December 7, 2021.

The local currency witnessed a decline in the session, as the import bill of Pakistan is rising and with the trade deficit widening in November.

The import bill of Pakistan recorded a hike in November 2021, as the country witnessed a growth of more than 82 per cent in imports on a year-on-year basis.

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 State Bank of Pakistan received a $3 billion deposit amount last week to support its reserves, provided by Saudi Arabia but despite that the local currency is losing value against the greenback.

The dealers said the depreciation in the local currency comes, as the country’s trade deficit is expanding with the import bill in November reaching $7.8 billion.

The local currency declined against the foreign currency, as the country’s trade deficit widened 68.6 per cent with imports to reach $32.851 billion during the first five months (July-November) of FY 2021/22.

In the open market, the buying and selling of the dollar was recorded at Rs177.75 and Rs179.25.

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