KARACHI: The US dollar continued to make gain against the Pakistani Rupee (PKR) for third consecutive day on Wednesday and ended at Rs218.38 in interbank foreign exchange market.
The exchange rate recorded 72 paisas decline in rupee value to end at Rs218.38 from previous day’s closing of Rs217.66 in the interbank foreign exchange market.
READ MORE: Dollar climbs up to PKR 217.66 at interbank closing
The rupee has witnessed decline during all three trading days of the ongoing week.
Currency experts said that shortage of dollar for import payment impacted the rupee value. Further decline in foreign exchange reserves also resulted a panic in the market.
They said that the government on August 20 withdrew the ban on import of luxury and non-essential items, which was imposed on May 18, 2022.
The government had imposed the ban in the wake of depleting foreign exchange reserves and falling value in the rupee against the dollar.
READ MORE: Dollar jumps to PKR 216.66 amid political crisis
The government lifted the ban at a time when both the indicators deteriorated.
After the ban the rupee fell to historic low of Rs239.94 to the dollar on July 28, 2022.
Pakistan’s foreign exchange reserves have increased by $52 million by week ended August 12, 2022. The foreign exchange reserves of the country have recorded at $13.613 billion by week ended August 12, 2022 as compared with $13.561 billion a week ago i.e. August 05, 2022.
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 $13.615 billion.
READ MORE: Rupee gains 30 paisas to dollar at closing on August 19, 2022
The official foreign exchange reserves of the State Bank witnessed an increase of $67 million to $7.897 billion by week ended August 12, 2022 as compared with $7.83 billion a week ago.
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 $12.249 billion.
Previously, the rupee made gain on reports of renewal of Saudi financial assistance helped to improve sentiments in the currency market. Further decline in international oil prices also helped the rupee to make gain.
Besides, the tight monitoring of the State Bank of Pakistan (SBP) had eased the pressure on exchange rate.
It is worth mentioning that the foreign exchange reserves of the country depleted massively.
READ MORE: Pakistani Rupee eases against dollar; Interbank ends at Rs214.88
