KARACHI: The dollar gained ground against the rupee on Thursday, according to dealers, as global oil prices rose. The local currency declined 15 paisas to Rs176.38 per dollar in the interbank foreign exchange market, down from Rs176.23 the day before.
The local currency gained earlier in the day, according to traders, as the dollar dipped to Rs176.10 in intraday trading. Reports of increased oil prices on the international market, on the other hand, boosted demand for dollars. A day ago, Brent crude was trading at around $85 per barrel.
Pakistan is a net importer of petroleum products, therefore any increase in world prices has a direct impact on the country’s foreign exchange payments.
During the first five months of the current fiscal year, the country’s oil import bill grew by 112% to $8.38 billion, compared to $3.94 billion in the same period the previous fiscal year.
The rupee had previously rebounded for two days in a row as a result of State Bank of Pakistan (SBP) policies requiring exporters to realize export revenues within 120 days rather than 150 days.
Falling foreign exchange reserves, according to dealers, will be a major problem for rupee stability in the coming days.
The country’s foreign exchange reserves declined by $255 million to $24.019 billion in the week ending December 31, 2021, compared to $24.274 billion the previous week. The State Bank of Pakistan’s (SBP) official foreign exchange reserves declined by $170 million to $17.686 billion in the week ending December 31, 2021, compared to $17.856 billion the previous week.
Since the start of the current fiscal year, the rupee has been under pressure. From Rs157.54 on June 30, 2021, to Rs176.38 today, the local unit has lost Rs18.84, or 11.95 percent, against the dollar.
At 3:50 p.m. PST, buying and selling of the dollar on the open market was recorded at Rs176.80/Rs178.30.