Rupee records minor gain against US dollar

KARACHI: Pakistani rupee registered a minor gain against the US dollar, appreciating 0.03% in the inter-bank market on Tuesday.

According to the State Bank of Pakistan (SBP), the rupee closed at Rs177.41 against the greenback.

After posting a fresh increase of 0.03%, the Pakistani rupee has depreciated by 12.61% (or Rs19.87) 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 ten months. It has lost 16.51% (or Rs25.14) to date, compared to the record high of Rs152.27 recorded in May 2021.

Geopolitical tensions and an all-time high current account deficit of $2.5 billion amid high global oil and other commodity prices seems to be a chief worry as it is increasing the dependence on foreign loans to meet its financial requirements, especially in a situation when imports are growing at a faster pace than exports.

A currency dealers said that the foreign exchange market is concerned about the increasing pressure on the balance of payments, despite the fact that the central bank has said there is enough financing available to fund the deficit and the foreign exchange reserves are also at a comfortable level.

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