Dollar weakens against Pakistani rupee thumbnail

Dollar weakens against Pakistani rupee

The value of the Pakistani rupee recovered Friday in the interbank market after dropping 18 paisas on January 6.

According to the data shared by the State Bank of Pakistan, the dollar depreciated 0.14% and traded at Rs176.67. It recorded a fresh drop of 25 paisas.

The local currency has been
extremely volatile amid the widening trade deficit and lost Rs2.98 in December
2021, breaking all records each day.

In the open market, the dollar was
being sold at Rs178.80 after losing 40 paisas.

Here are the open market rates of major currencies on January 7, 2022

Currency  Buying  Selling 
USD  178.30 178.80 
Saudi Riyal  46.90  47.40 
UAE Dirham  49.40  50.20 
UK Pound  238.30  240.80 
Euro  199.80  201.30 
Japanese Yen  1.50  1.52 
AUD  124.80  126.80 
CAD  137.50  139.50 
Chinese Yuan  27.00  28.00

Exchange Companies Association of Pakistan’s Zafar Paracha said that the decrease in imports from $7.8 billion in November 2021 to $7.5 billion in December 2021 had a direct impact on the devaluation of the US dollar. The greenback would face further depreciation in January as imports are expected to drop even further, he added.

Pakistan’s trade deficit had ballooned to $20.74 billion in the first five months of the Fiscal Year 2021-22. Imports grew 72% and the deficit stood at $5.10 billion in November – the highest trade deficit recorded in a single month. Pakistan has been exporting items worth $100 million but importing worth $260 million every day.

 A 5% decrease in imports has been noted in the last month.

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