KARACHI: On Wednesday, the rupee regained 7 paisas versus the dollar, as worldwide oil prices fell.
In the interbank foreign currency market, the exchange rate finished at Rs176.16 to the dollar, down from Rs176.23 the day before.
According to the traders, the downward trend in global crude oil prices aided the local currency’s advances.
However, despite displaying great progress, the country’s foreign currency reserves have begun to deplete, mainly to increasing oil costs, which are a key contribution to the country’s import bill.
To fulfill local demand, Pakistan is significantly reliant on oil imports. The country’s oil bill increased by 107 percent to $11.7 billion in the first seven months of the current fiscal year (July–January), compared to $5.64 billion in the same period the previous fiscal year.
The country’s liquid foreign currency reserves fell by $231 million to $23.49 billion in the week ending February 11, 2022, compared to $23.721 billion the previous week.
Similarly, the State Bank of Pakistan’s (SBP) official reserves declined by $241 million to $17.096 billion in the week ending February 11, 2022, compared to $17.337 billion the previous week.
At 3:30 p.m. PST, buying and selling of the dollar on the open market was registered at Rs176.3 and Rs177.3.