Rupee hits record low of Rs176.42 against dollar

KARACHI: The rupee lost 94 paisas against the dollar to hit an all-time low of Rs176.42 on Thursday, owing to a huge trade deficit during the first five months of the current fiscal year.

On Wednesday the exchange rate closed at 175.48 in interbank foreign exchange market. Previously, the rupee fell to the historic low of Rs176.20 against the greenback on November 29, 2021.

Reportedly, the country recorded the highest-ever monthly trade deficit of $5.1 billion in November 2021.

For November 2021, exports stood at $2.9 billion (+34 per cent YoY, +18 per cent MoM), while the imports were $8 billion (+95 per cent YoY, +26 per cent MoM).

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During the first five months of the current fiscal year, exports and imports reached $12.4 billion and $33.1 billion, respectively.

The trade deficit jumped up 117 per cent YoY to $20.8 billion during the period under review.

According to a poll conducted by Topline Securities, the rupee may fall further next year, as participants see the local unit around Rs180 to Rs185 against the dollar.

The market was expecting a recovery in the rupee value; following the hike in the policy rate and signing of agreement between the SBP and the Saudi Development Fund (SDF) for the placement of $3 billion with the central bank. However, the large imports offset the efforts of the State Bank on the external front.

Read more: Rupee plummets to historic low of Rs175.73 against dollar

The rupee remained under pressure since the start of the current fiscal year. It fell Rs18.88, or 11.98 per cent, from June 30, 2021 closing of Rs157.54 to the closing of Rs176.42 on December 2, 2021.

Meanwhile, in the open market the buying and selling of the dollar has been recorded at Rs176.50/Rs178 at the time of the filing of this report.