Rupee depreciates by 33 paisas on growing demand for imports

Rupee depreciates by 33 paisas on growing demand for imports

KARACHI: The Pak Rupee depreciated by another 33 paisas against dollar on Friday owing to rising demand of the foreign currency for import payments.

The rupee ended Rs167.33 to the dollar from previous day’s closing of Rs167.00 in interbank foreign exchange market.

Currency experts said that due to economic normalcy return after ease in lockdown the domestic demand for imported goods had increased.

They further said that due to weekly holidays ahead also escalated the demand for the foreign currency.

The local unit fell by around 70 paisas during the outgoing week.

The experts believed that the rupee would rebound in coming days owing to sufficient inflows.

State Bank of Pakistan (SBP) has said that the workers’ remittances rose by a significant 50.7 percent during June 2020 to reach monthly record high $2.46 billion compared with $1.63 billion in June 2019.

Similarly, on a cumulative basis, workers’ remittances increased to a historic high level of $23.12 billion during FY20, witnessing a growth of 6.4 percent over $21.74 billion during FY19.

According to Pakistan Bureau of Statistics (PBS) the import bill of the country fell by 18.6 percent to $44.57 billion as compared with $54.76 billion in the preceding fiscal year.

This helped the country to curtail the trade deficit for the year. The trade deficit of the country shrank by 27 percent to $23.18 billion during fiscal year 2019/2020 as compared with the deficit of $31.8 billion in the preceding fiscal year.