KARACHI: On Friday, the rupee plummeted for the second day in a row against the dollar as Russian assaults on Ukraine escalated.
In the interbank foreign currency market, the rupee slid 72 paisas versus the dollar to settle at Rs177.11, down from Rs176.39 the day before.
Because Pakistan is a net importer of petroleum goods, the Russian invasion of its neighboring country has pushed up oil prices on international markets, which has had a direct influence on the local currency.
Since the start of Russian strikes, the rupee has lost 95 paisas in the previous two days, causing worldwide oil prices to drop to about $103 per barrel.
The rupee was also under pressure throughout the day due to the effect of increasing oil prices and the widening current account deficit.
The country’s current account deficit (CAD) reached $2.6 billion in January 2022 ($1.9 billion in December 2021), bringing the total CAD to $11.6 billion for the first seven months of the current fiscal year.
Scheduled government repayments for foreign debt, according to analysts, have also put pressure on the currency.
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