KARACHI: According to traders, the rupee slipped 24 paisas versus the dollar on Tuesday, as the market reopened following three days of weekly and bank holidays.
The rupee closed the interbank foreign currency market at Rs176.75 versus the dollar, up from Rs176.51 on December 31, 2021.
Because the market had been closed for the previous three days, traders claimed dollar demand remained strong throughout the day.
Due to weekly holidays, the market was closed on January 1 and 2. It was also closed on January 3 due to a bank holiday.
The rupee made a strong comeback in the final two days of the year, finishing at Rs176.51. During the final two days of trade in 2021, it regained Rs1.73 versus the foreign currency.
On December 29, 2021, the local currency hit an all-time low of Rs178.24 per dollar.
Due to import restrictions imposed by the Finance (Supplementary) Bill, 2021, currency dealers said the market was optimistic about the rupee’s stability in the coming days.
The dealers said ease in the import bill would help the rupee make recovery. In December 2021, the import bill was $6.9 billion, down from $7.9 billion in November 2021.
They predicted that the local currency would continue to face difficulties due to falling foreign exchange reserves.
The central bank’s official foreign exchange reserves fell $299 million to $17.85 billion in the week ending December 24, 2021, compared to $18.15 billion the previous week.
The SBP’s official foreign exchange reserves are import cover of 2.25 months, which is less than the three-month benchmark.
At 4:15 p.m. PST, buying and selling of dollars in the open market was recorded at Rs176.60/Rs179.50.