Web Desk – January 26, 2022
KARACHI: The Pakistani rupee fell for the second straight day against the dollar amid surging global oil prices.
The rupee declined 23 paisas to end at Rs176.72 against the dollar on Tuesday, against the closing of Rs176.49 the previous day in the interbank foreign exchange market.
The dealers said that the market had seen high dollar demand due to the gradual increase in the international oil prices. The benchmark Brent oil was trading at $86.20 per barrel during the day on Tuesday.
Pakistan is the net importer of petroleum products to meet domestic energy demands. The country’s oil bill sharply increased by 113.39 per cent to $10.18 billion during the first half (July – December) 2021/22, as compared with $4.77 billion in the corresponding half of the last fiscal year.
The dealers said that the latest escalation in dollar demand due to the hiked international oil prices, offset the measures taken by the State Bank of Pakistan (SBP) regarding restrictions on realising export receipts.
The central bank on January 5, 2022 directed the exporters to materialise their export receipts within 120 days instead of the previous 150 days.
The rising oil prices may weaken the rupee value in the coming days, as Pakistan is the net importer of petroleum products to meet domestic energy demands.
The local currency remained under pressure since the start of the current fiscal year due to higher external payments. The rupee fell 19.18, or 14.35 per cent, from Rs157.54 to the dollar on June 30, 2021 to Rs176.72 on January 25, 2022.
The rupee hit an all-time low of Rs178.24 on December 29, 2021.
In the open market, the buying and selling of the dollar was recorded at Rs177.9/Rs179.4 at 4:00pm PST.