Pakistani rupee fails to halt US dollar’s upward march; down by Rs1.17

The money market on Wednesday witnessed the unhalted march of the US dollar as the greenback edged up further by Rs1.17 in the interbank trading, reported 24NewsHD TV channel.

According to the forex dealers, the local unit didn’t pick up during the trading activity and slumped in the interbank trading. The dollar was traded for Rs220.88 as the business drew to a close for the day. 

Interbank closing #ExchangeRate for todayhttps://t.co/Bxnqj6yBLq pic.twitter.com/JvzpjfUM1E

— SBP (@StateBank_Pak) October 19, 2022

Yesterday, the American currency was closed at Rs219.71. 

Interbank closing #ExchangeRate for todayhttps://t.co/pfyXd3rubG pic.twitter.com/JYtVbY9Umn

— SBP (@StateBank_Pak) October 18, 2022

The PKR is getting a drubbing at the hands of the USD for the last six days in which the value of the American currency has been appreciated by Rs2.71. 

The experts believe that the US dollar is evaporating from the market and is being sold in the grey market at much higher rates. The increasing differential between the rates of dollar in the open market and interbank trading is indicative of this fact. Yesterday, the dollar rate in the open market was Rs223.50. 

Though the State Bank tightened its rules earlier vis-à-vis the emergence of grey market, but now it seems the measures have stopped controlling it. 

The financial experts said that pressure was being seen on the Pakistani rupee due to external repayment of commercial borrowing and import bills.

The Pakistan Bureau of Statistics (PBS) said on Tuesday that Pakistan’s oil and eatables imports grew 9.06 per cent to $7.58 billion in the first quarter of the current fiscal year from $6.95bn a year ago. 

The oil import bill increased by over 5.94pc to $4.86bn in July-September from $4.59bn over the corresponding months of last year. Whereas the food import bill rose by over 15.21pc to $2.72bn in the three months under review from $2.36bn a year ago to bridge the local production gap.