The rupee appreciated slightly against the dollar in the inter-bank market on Friday and broke a four-day losing streak against the US dollar, closing the day at Rs 171.18.
The rupee’s depreciation continued on Wednesday, as the dollar surged to a new high of Rs 171.20, according to local traders.
Interbank closing #ExchangeRate for today: https://t.co/KgqcCOJIf8 pic.twitter.com/yy6BTUOviO— SBP (@StateBank_Pak) October 15, 2021
A day earlier, the dollar reached a new high of Rs 171.04 against the rupee. The rupee’s value against the dollar dropped nine paisas in the interbank foreign currency market.
Read more: Fitch forecasts Pakistani rupee to weaken further in 2022
The demand for dollars for import payments remained high, according to merchants, causing the rupee’s value to depreciate.
The import cost increased by 65 percent to $18.63 billion in the first quarter of the current fiscal year (July–September), compared to $11.28 billion in the previous fiscal year’s equivalent quarter.
The State Bank of Pakistan (SBP) has taken a number of steps in recent days to discourage dollar outflows, these steps, however, are unable to halt the declining rupee.
Since the start of the current fiscal year, the local currency has been under pressure. From Rs 157.54 on June 30, 2021 to Rs 171.04 as of today, the local unit has lost Rs 13.59 percent against the dollar.
Earlier today, speaking at the launch of the Kisan Portal, Prime Minister Imran Khan had said that the pressure on the Pakistani rupee is temporary and will be over soon.