Rupee rallies 28 paisas to dollar as world oil prices slide

Rupee rallies 28 paisas to dollar as world oil prices slide

KARACHI: The Pak Rupee (PKR) rallied 28 paisas against the dollar on Thursday as decline in international oil prices continued.

The rupee ended at Rs175.39 to the dollar from previous day’s closing of Rs175.67 in the interbank foreign exchange market.

READ MORE: Dollar falls 11 paisas to PKR as global oil prices ease

The rupee strengthened for the second straight day. It recovered around 39 paisas against the dollar owing to ease in oil prices in the international market.

The oil import bill surged by 107 per cent to $11.7 billion during the first seven months (July – January) 2021/2022 as compared with $5.64 billion in the same period of the last fiscal year.

READ MORE: PKR slips for second straight day against dollar

On the other hand external inflows have supported the rupee to some extent. The State Bank of Pakistan (SBP) recently received over a billion dollars from the IMF and another a billion dollars under Sukuk proceeds, which helped the central bank to strengthen the foreign exchange reserves.

READ MORE: Dollar jumps up by 76 paisas to PKR on high oil prices

The total liquid foreign exchange reserves of the country increased by $1.637 billion to $23.721 billion by the week ended February 04, 2022 as against $22.084 billion by the week ended January 28, 2022.

The official reserves of the State Bank climbed up by $1.61 billion to $17.337 billion by the week ended February 04, 2022 as compared with $15.727 billion a week ago.

READ MORE: Dollar slips 16 paisas to PKR on rising forex reserves

The local currency remained under pressure since the start of the current fiscal year. The rupee lost Rs17.85 or 11.33 per cent against the dollar from Rs157.54 on June 30, 2021 to the present level of Rs175.39.

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