KARACHI: The Pakistan Rupee (PKR) fell to Rs180 against the dollar to make a new record low in interbank foreign exchange market.
The rupee slipped by 56 paisas against the dollar in midday trading on Thursday March 17, 2022 from previous day’s closing of Rs179.44, which is the record low of the rupee at closing, in the interbank foreign exchange market.
READ MORE: Dollar makes new record high at PKR 179.22
The major reasons for the rupee decline may be political unrest, volatile international oil prices and higher commodity import payments.
READ MORE: Dollar jumps to historic high at PKR 178.98
The dollar demand was also rising due to import of commodities related to the holy month of Ramzan.
Besides, the oil prices have seen continuous fluctuation since Russia-Ukraine war begun on February 24, 2022.
READ MORE: Dollar eases by 12 paisas to PKR in interbank
Pakistan is net importer of petroleum products and changes in the prices directly affects the oil import bill.
The import of petroleum products recorded over 100 per cent increase to $12.94 billion during first eight months (July – February) 2021/2022 as compared with Rs6.44 billion in the corresponding months of the last fiscal year.
READ MORE: Rupee ends flat to dollar, maintains all-time low level
Furthermore, the fall in foreign exchange reserves also put pressure on the rupee value. The liquid foreign exchange reserves of the country slipped by $206 million to $22.669 billion by the week ended March 04, 2022 as against $22.875 billion a week ago.