The Pakistani rupee was almost stable against the US dollar in the interbank on Friday and lost only one paisa (-0.01%).
According to the State Bank of Pakistan, the US dollar opened at Rs 168.18 and closed at Rs 168.19. In the open market, the rupee was trading at Rs 168.30 / 169.50 per dollar.
Overall, the Pakistani rupee lost Rs 0.17 during this week against the US dollar, while the depreciation during fiscal year 2021-22 was Rs 10.75. Local unit lost Rs 7.92 against the US dollar during the year 2021. The local currency has maintained a downtrend after hitting a 22-month high of Rs 152.27 in May 2021, losing a cumulative Rs 15.88 in the past four months. month to date.
Currency experts said the market has watched the dollar’s demand for imports and business payments, especially due to the upcoming two weekly public holidays. They said data released by the State Bank of Pakistan (SBP) showing a widening current account deficit also kept pressure on local unity.
Pakistan’s current account deficit widened to $ 2.29 billion in the first two months (July-August) of the current fiscal year. The current account had posted a surplus of $ 838 million in the same months of the previous fiscal year.
Market sources said dollar inflows were seen during the day. They believed that the State Bank of Pakistan (SBP) stepped in to support the local currency.
They said the rupee is under enormous pressure due to unfavorable macroeconomic data and the situation in Afghanistan. They said that the increasing current account deficit is also a major concern for the market. They were, however, optimistic that there was no more room for the rupee to hold the decline, arguing that if it continued to fall, the decline would be unsustainable and short-lived.