KARACHI: Due to a rise in global oil prices and increased foreign currency demand for import payments, the rupee declined 76 paisas versus the dollar on Monday, traders said.
In the interbank foreign currency market, the exchange rate finished at Rs175.47 versus the dollar, down from Rs174.71 on Friday
High oil prices on foreign markets, according to dealers, boosted demand for dollars. Following a seven-year high due to Ukraine-Russia tensions, oil prices remained stable on Monday in seesaw trade. Brent crude was selling at approximately $94 per barrel.
To fulfill local demand, Pakistan is a net importer of foreign oil. The country’s oil import bill increased by 113.40 percent to $10.18 billion in the first half of the fiscal year 2021/22, compared to $4.77 billion in the previous fiscal year.
Domestic demand has surged as a result of stronger economic activity after two vacations, dealers said, adding that domestic manufacturing and the export-oriented industry both need imported raw materials, putting pressure on the local currency.
Since the beginning of the current fiscal year, the rupee has been under pressure. From Rs157.54 on June 30, 2021, to Rs175.47 today, the local currency has lost Rs17.93, or 11.38 percent, versus the dollar.
At 3:50 p.m. PST, the open market reported buying and selling of the dollar at Rs175.80/177.30.