Rupee breaks all previous records against US dollar despite $3bn Saudi deposit

Local currency traded at 177.80 to 178.80 per dollar in the open market

KARACHI: Pakistani rupee on Tuesday plunged against the US dollar in the interbank market once again to hit yet another all-time low of Rs176.79.

According to the State Bank of Pakistan, the dollar opened at Rs176.48 and closed at Rs176.79, shedding 31 paisas or -0.18 per cent. Within the open market, the rupee was traded at 177.80/178.80 per dollar.

The dollar had hit the highest ever levels of Rs176.77, Rs176.42 and Rs176.20 against the local currency just last week. Overall, the local currency has shed two paisas against the greenback during the last two days.

The depreciation during the ongoing fiscal year (FY22) has been Rs19.37, and Rs16.64 in the current year 2021 (CY21).

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According to experts, the $3 billion deposit from Saudi Arabia has failed to leave any positive impact despite expectations. They said that funds are a sort of operating reserve that can only give a temporary boost, but are not good enough to solve structural financial pressures.

A day ago, the market recorded some recovery in the rupee’s value; however, large imports kept the dollar demand higher. The rupee is under severe pressure due to a surge in import bill and widening trade deficit.

The decline in State Bank of Pakistan’s (SBP) official foreign exchange reserves are also another reason for the local currency’s deterioration.

Moreover, the Pakistani rupee’s value against the US dollar has fallen by 30.5pc during the incumbent PTI-led government’s tenure, as per a report in The News.

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