The rupee fell by Rs1.6 to end at Rs178.78 to a dollar from last Friday’s closing of Rs171.18 in the interbank foreign exchange market.
Currency experts said that the market was opened after two days holidays. Further a public holiday on October 19, 2021 put pressure on dollar demand.
They said that huge import bill during first quarter of the current fiscal year pushed up the dollar demand. The import bill of the country recorded an increase of 66.11 per cent during first quarter (July – September) 2021. The country has spent foreign exchange to the tune of $18.75 billion during first quarter of the current fiscal year as compared with $11.28 billion in the corresponding quarter of the last fiscal year.
The oil import bill is the major reason for the massive depreciation in the local currency. The oil import bill registered a phenomenal growth of 97 per cent to $4.59 billion during the first quarter of the current fiscal year as compared with $2.33 billion in the corresponding quarter of the last fiscal year.