KARACHI: The rupee declined against the dollar for the third day in a row on Thursday, owing to a rise in worldwide oil prices.
The currency rate finished at Rs176.49 to the dollar, up from Rs176.22 at the previous day’s close in the interbank foreign exchange market.
During the last three trading sessions, the local unit fell by 57 paisas, or 0.32 percent.
According to the dealers, the market has experienced considerable dollar demand as worldwide oil prices have gradually increased. At the market’s close on Wednesday, the benchmark Brent oil price was $89.17 a barrel.
To meet local energy demands, Pakistan is a net importer of petroleum products. The country’s oil bill climbed by 113.39 percent to $10.18 billion in the first half of fiscal year 2021/22, compared to $4.77 billion in the previous fiscal year’s equivalent half.
According to dealers, the recent increase in dollar demand as a result of higher worldwide oil prices has negated the State Bank of Pakistan’s (SBP) limitations on realising export proceeds.
On January 5, 2022, the central bank instructed exporters to materialise their export proceeds within 120 days, rather than the prior 150 days.
Because of greater foreign payments, the local currency has remained under pressure since the start of the current fiscal year. The rupee fell 18.95 percent, or 12.03 percent, from Rs157.54 to the dollar on June 30, 2021 to Rs176.49 on January 20, 2022.
On December 29, 2021, the rupee reached an all-time low of Rs178.24.
At 3:35pm PST, the open market buying and selling of the dollar was reported at Rs176.90/Rs178.10.
