Karachi: The rupee gained three paisas versus the dollar on Tuesday, as dollar demand for import payments increased.
The currency rate finished at Rs174.50 to the dollar, up from Rs174.47 at the previous day’s close in the interbank foreign exchange market.
According to the dealers, the surge in worldwide oil prices has boosted dollar demand. However, the local currency steadied as a result of rumours that oil prices had fallen.
The benchmark Brent crude surged to $94 a barrel earlier in the day, its highest level since October 2014. The easing of tensions between the US and Iran over the civil nuclear problem, on the other hand, helped oil settle at more than $92.
Pakistan is a net importer of oil, and fluctuations in world oil prices have a direct influence on the country’s balance of payments. The high international prices resulted in a significant increase in the current fiscal year’s oil import costs during the first half.
The oil import cost increased by 113.40 percent to $10.18 billion in the first half of fiscal year 2021/2022, compared to $4.77 billion in the same time the previous fiscal year.
According to the dealers, overall sentiment in the current market was good throughout the day due to transfers of cash from the International Monetary Fund (IMF) and Sukuk proceeds.
