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Pak currency downward trend continues, drops to Rs 177.47 against US dollar

Karachi [Pakistan], February 28 (ANI): Amid hefty current account deficit, surging energy and oil prices, and Russia-Ukraine conflict, the downward trend of Pakistan’s currency continued on Monday, dropping to Rs 177.47 against the US dollar.

Rupee has depreciated by 12.65 per cent since July 1, 2021. Moreover, the Russia-Ukraine conflict presents uncertainties for Pakistan’s rupee, reported Geo News.

The all-time high current account deficit of USD 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.

After posting a fresh decline of 0.20 per cent, the Pakistani rupee has depreciated by 12.65 per cent (or Rs19.93) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed, reported Geo News.

The rupee had maintained a downward trend for the past nine months. It has lost 16.54 per cent (or Rs 25.2) to date, compared to the record high of Rs 152.27 recorded in May 2021.

A currency dealer 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, reported Geo News.

“We intend to take a cue for the rupee from how the government manages the current account deficit and what measures it takes to improve the current account balance,” he said, adding that investors also assessing the Russia-Ukraine situation and sanctions imposed by the US on Moscow. (ANI)

This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.

Source: The Print

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