AGL 5.60 Decreased By ▼ -0.18 (-3.11%)
ANL 8.90 Increased By ▲ 0.02 (0.23%)
AVN 76.85 Decreased By ▼ -2.07 (-2.62%)
BOP 5.26 Decreased By ▼ -0.02 (-0.38%)
CNERGY 4.63 Decreased By ▼ -0.07 (-1.49%)
EFERT 81.27 Decreased By ▼ -0.33 (-0.4%)
EPCL 50.08 Decreased By ▼ -0.83 (-1.63%)
FCCL 13.16 Decreased By ▼ -0.22 (-1.64%)
FFL 5.69 Decreased By ▼ -0.03 (-0.52%)
FLYNG 7.07 Decreased By ▼ -0.08 (-1.12%)
FNEL 4.79 Decreased By ▼ -0.03 (-0.62%)
GGGL 8.80 Decreased By ▼ -0.10 (-1.12%)
GGL 14.55 Decreased By ▼ -1.33 (-8.38%)
HUMNL 5.69 Decreased By ▼ -0.08 (-1.39%)
KEL 2.63 Decreased By ▼ -0.03 (-1.13%)
LOTCHEM 28.60 Decreased By ▼ -0.45 (-1.55%)
MLCF 24.49 Decreased By ▼ -0.61 (-2.43%)
OGDC 72.43 Decreased By ▼ -0.02 (-0.03%)
PAEL 15.36 Increased By ▲ 0.01 (0.07%)
PIBTL 5.00 Decreased By ▼ -0.05 (-0.99%)
PRL 16.10 Decreased By ▼ -0.19 (-1.17%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
TELE 9.14 Decreased By ▼ -0.23 (-2.45%)
TPL 7.23 Decreased By ▼ -0.10 (-1.36%)
TPLP 18.61 Decreased By ▼ -0.34 (-1.79%)
TREET 21.68 Decreased By ▼ -0.32 (-1.45%)
TRG 136.71 Decreased By ▼ -4.44 (-3.15%)
UNITY 16.88 Decreased By ▼ -0.14 (-0.82%)
WAVES 9.86 Decreased By ▼ -0.04 (-0.4%)
WTL 1.41 No Change ▼ 0.00 (0%)
BR100 4,225 Decreased By -29.6 (-0.7%)
BR30 15,518 Decreased By -214.7 (-1.36%)
KSE100 42,150 Decreased By -243.4 (-0.57%)
KSE30 15,588 Decreased By -75.7 (-0.48%)
Follow us

Rising oil prices and a record high current account deficit in January weighed in on Pakistan's rupee that registered further depreciation of 0.41% against the US dollar in the inter-bank market on Friday.

As per the State Bank of Pakistan (SBP), the rupee closed at 177.11 after a day-on-day depreciation of 72 paisas or 0.41%. On Thursday, the local currency had depreciated 23 paisas against the dollar.

Experts say decline in the local currency is due to the jump in current account deficit amid a rising import bill. Oil prices, which are a major determinant of the rupee-dollar parity, have jumped as Russia's invasion of Ukraine stoked global supply concerns. Markets are also bracing for the potential impact of trade sanctions on major crude exporter Russia.

Meanwhile, Pakistan’s current account deficit worsened as it crossed the $11 billion mark in the first seven months of this fiscal year (FY22), mainly due to higher import bill. On a month-on-month basis, the current account deficit increased 33% in January 2022 and clocked-in at $2.55 billion as against $1.91 billion in December 2021.

Rupee falls against US dollar after Russia announces 'military operation' against Ukraine

“Given the rising commodity prices, we project C/A deficit to remain elevated in the coming months,” said IGI Securities in a note.

The brokerage firm stated that with limited foreign exchange inflow expected in the near-term, rising C/A deficit will put a strain on the country’s reserves, which stand at $16.81 billion for the SBP and $6.42 billion for commercial banks.

“Thus, we can expect pressure on PKR-USD parity in the near-term and bearing negative implication on domestic inflation,” it added.

Meanwhile, Malik Bostan, Chairman Exchange Companies Association of Pakistan (ECAP), told Business Recorder that Russia's invasion of Ukraine is denting confidence across the globe.

“Things are too volatile to be assessed at the moment, but we are hopeful that the Russia-Ukraine situation improves,” he said.

Inter-bank market rates for dollar on Friday

BID Rs 177

OFFER Rs 177.10

Open-market movement

In the open market, the PKR lost 20 paisas for both buying and selling against USD, closing at 177.50 and 178.50, respectively.

Against Euro, the PKR lost one rupee for buying and 1.10 rupees for selling, closing at 197.50 and 199.50, respectively.

Against UAE Dirham, the PKR lost 18 paisas for buying and 10 paisas for selling, closing at 48.60 and 49, respectively.

Against Saudi Riyal, the PKR lost 20 paisas for buying and 15 paisas for selling closing, at 46.80 and 47.20, respectively.

Open-market rates for dollar on Friday

BID Rs 177.50 OFFER Rs 178.50

Comments

Comments are closed.

Rupee crosses 177 against US dollar after record C/A deficit, high oil prices

‘Won’t take IMF’s dictation’: Dar

FY22 trade with US soars 38.3pc to $10.5bn YoY, NA told

US unveils high-tech B-21 stealth bomber

PM urges Chinese co to invest in renewable energy sector

PM seeks reform plan: Power sector PDM govt’s Achilles heel

Import of urea: PPRA refuses to give fresh exemption

ECC decides to import urea; Rs8bn okayed for MPs’ schemes

Taxation-related issues of IT sector: FBR nominates IR Commissioners as focal persons

Maj-Gen Sharif made ISPR DG

SBP repays $1bn bond before due date