KARACHI: The US dollar fell by 53 paisas against the Pakistani Rupee (PKR) to close at Rs238.84 in the interbank foreign exchange market on Monday.
The exchange rate ended at Rs238.84 to the dollar from last Friday’s closing of Rs239.37 in the interbank foreign exchange market.
The rupee recorded historic low of Rs239.94 to the dollar on July 28, 2022.
Currency experts said that fall in import bill for the month of July 2022 has helped the rupee to make recovery.
Besides, a detailed explanation jointly issued by the ministry of finance and the State Bank of Pakistan (SBP) also helped the market to respond positively.
The free-fall in rupee continued against the greenback for the last many days due to political instability and weak economic indicators.
Currency dealers said that external payment pressure causing a continuous decline in rupee value.
The dealers said that the continuous decline in rupee value may also be attributed to the fall in foreign exchange reserves.
The foreign exchange reserves of the country have further declined.
Pakistan’s foreign exchange reserves have declined by $368 million to $15.242 billion by week ended July 15, 2022. The foreign exchange reserves of the country were $15.61 billion a week ago i.e. July 07, 2022.
The country’s foreign exchange reserves hit all-time high of $27.228 billion on August 27, 2021. Since then the foreign exchange reserves have declined by $11.986 billion.
The official reserves of the State Bank also depleted by $388 billion to $9.329 billion by week ended July 15, 2022 as compared with $9.717 billion a week ago.
The foreign exchange reserves held by the central bank witnessed a record high at $20.146 billion by week ended August 27, 2021. Since then the official reserves of the SBP declined by $10.817 billion.