Pakistani rupee remained firm against the US dollar on Friday after depreciating for four days in a row and recovered two paisas (+0.01 percent). According to the Central Bank of Pakistan, the US dollar opened at Rs171.20. It closed at Rs171.18. Within the open market, the rupee was traded at Rs171/172 per dollar. It is showing a little improvement as it hit Rs172.50 a day earlier.
Pakistani rupee shed Rs0.65 during this week against the US $, while depreciation during the fiscal year 2021-22 has been Rs13.76. The local unit has shed Rs10.91 against the US dollar in the current year 2021. Local currency maintained a downtrend after it touched 22-month high of Rs152.48 in May 2021. Losing a cumulative Rs18.87 in the past five months to date.
The currency experts said that the rupee remained firm ahead of two weekly holidays. The were of the view as normally demand for dollars remains high ahead of weekends. High global commodity prices and rising domestic demand after ease in coronavirus cases escalated the demand for imported goods.
Pakistan’s import bill registered a record increase of 65 % to $18.63 billion during July–September of the current fiscal year. As compared with $11.28 billion in the corresponding period of the last year. The higher import bill also widened the trade deficit. Which ballooned by almost 100 percent to $11.66 billion during the quarter under review, compared with the deficit of $5.81 billion in the same period of the last year.
On the other hand, the Afghan situation has also been impacting the rupee-dollar parity since August 15 last. The rupee continued to bear the pressure despite a 17 percent year-on-year increase in remittances sent by overseas Pakistanis, which stood at $2.7 billion in September 2021, and higher exports.
