- Rupee closes at Rs176.23 against the greenback, SBP data shows.
- Decline comes on back of mounting pressure of import payments.
- Pakistani rupee has depreciated by 11.86% since July 1, 2021.
KARACHI: Pakistani currency dropped to Rs176.23 against the US dollar in the inter-bank market on Tuesday in the wake of the mounting pressure of import payments on the back of a surge in commodity prices across global markets and the tumultuous geopolitical situation in Ukraine.
According to data released by the State Bank of Pakistan (SBP), the local currency closed at Rs176.23, recording a loss of 0.27% against the greenback.
After posting a fresh decline of 0.27%, the Pakistani rupee has depreciated by 11.86% (or Rs18.69) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.
The rupee had maintained a downward trend for the past nine months. It has lost 15.73% (or Rs23.96) to date, compared to the record high of Rs152.27 recorded in May 2021.
Currency dealer said that rupee is likely to trade at 175.40-175.90 band in coming sessions. “However, a big move will be defined by how international commodity prices move, given geopolitical uncertainty,” the dealer predicted.
Traders will be closely watching the outcome of the plenary session of the Financial Action Task Force (FATF) starting from February 21 to March 4 in Paris for the clue regarding the rupee’s future course.
The FATF upcoming decision would decide whether Pakistan should exit from the grey list.
Analysts said the foreign exchange volatility is on the rise as the government oscillates between declining reserves and efforts to rebuild them, leaving traders in the crossfire.