Rupee hits new midday low of Rs228.50 against dollar

Rupee hits new midday low of Rs228.50 against dollar

KARACHI: The Pakistani Rupee (PKR) made a new midday trading low of Rs228.50 against the US dollar on Friday in interbank foreign exchange market.

The dollar is being traded at Rs228.50, up Rs1.69 from last day’s closing of Rs226.81 in the interbank foreign exchange market.

READ MORE: Rupee ends to new low at Rs226.81 against dollar in interbank

Currency experts said that the rupee under severe pressure due to high dollar demand for external payments.

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.

READ MORE: PKR plunges Rs227 to dollar at interbank midday trading

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.

READ MORE: Rupee hits fresh low Rs224.92 to dollar at interbank closing

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.

The SBP on July 07, 2022 announced a hike of 125 basis points in policy rate to bring it to 15 per cent. The purpose of increasing the interest rate was to curb the demand and support the rupee value. However, the effort of the SBP failed to support the rupee value.

READ MORE: Pakistani Rupee crashes to Rs222 against Dollar at closing on July 19, 2022