KARACHI: The US dollar jumped to make new record high against the Pak Rupee (PKR) at Rs182.19 in the interbank foreign exchange market on Monday.
The rupee declined by 41 paisas to close at Rs182.19 against the dollar from last Friday’s closing of Rs181.78 in the interbank foreign exchange market. The previous closing was already the record low of the local currency.
READ MORE: Dollar continues historic journey; tops at PKR 181.78
Currency experts said that the dollar demand remained high during the day as market was opened after two weekly holidays. Further, falling foreign exchange reserves, volatiles commodity prices in international markets and political uncertainty further depressed the rupee value.
READ MORE: Dollar maintains record high against PKR at Rs181.73
Large external payments against foreign debts depressed the rupee value. Pakistan’s foreign exchange reserves fell by $2.28 billion to $21.44 billion by March 18, 2022 as compared with $23.72 billion as of February 4, 2022. The foreign exchange reserves of the country hit record high at $27.23 billion on August 27, 2021.
READ MORE: Rupee’s losing streak continues as dollar tops Rs181.73
The ballooning current account deficit escalated the dollar value. Pakistan’s current account deficit ballooned to $12 billion during first eight months (July – February) 2021/2022 against a surplus of $994 million in the corresponding months of the last fiscal year. Although the current account deficit narrowed to $545 million in February 2022 as compared with the deficit of $2.53 billion in January 2022, scheduled external repayments are still a threat to balance of payment.
