Rupee falls 24 paisas against dollar

KARACHI: The rupee fell 24 paisas against the dollar on Tuesday, as the market opened after three days due to weekly and bank holidays, dealers said.

The rupee ended at Rs176.75 against the greenback from the closing of Rs176.51 on December 31, 2021 in the interbank foreign exchange market.

The dealers said the dollar demand remained high during the day because the market remained closed for the last three days.

The market remained closed on January 1 and 2 due to weekly holidays. Further on January 3, it was closed due to a bank holiday.

The rupee made a sharp recovery during the last two days of the year and ended at Rs176.51. It cumulatively recovered Rs1.73 against the foreign currency during the last two days trading of 2021.

The local currency recorded an all-time low of Rs178.24 to the dollar on December 29, 2021.

The currency dealers said the market was optimistic about the rupee stability in the coming days due to import restrictions introduced through the Finance (Supplementary) Bill, 2021.

The dealers said ease in the import bill would help the rupee make recovery. The import bill decreased to $6.9 billion in December 2021, compared with $7.9 billion in November 2021.

They said the falling foreign exchange reserves would remain a challenge for the local currency.

The official foreign exchange reserves of the central bank slipped $299 million to $17.85 billion by the week ended December 24, 2021, compared with $18.15 billion a week ago.

The official foreign exchange reserves of the SBP is import cover of 2.25 months, which is below the benchmark of three months.

In the open market, buying and selling of the dollars was recorded at Rs176.60/Rs179.50 at 4:15pm PST.

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