KARACHI: The rupee fell sharply by Rs1.12 against the dollar on Tuesday, owing to the demand for external payments, dealers said.
The exchange rate ended at Rs171.63 against the greenback from the previous day’s closing of Rs170.51 in the interbank foreign exchange market.
It was the second straight session when the rupee witnessed a decline. The local currency recorded a significant gain last week after an announcement of the Saudi government on October 26, 2021 to support Pakistan in managing the balance of payments position.
The local unit recorded the all-time low of Rs175.27 on October 26, 2021.
The dealers said the high import payments had escalated the demand for the dollars.
The import bill registered a growth of 65.15 per cent to $25.06 billion during July-October 2021, compared with $15.17 billion in the same period of the last fiscal year, the Pakistan Bureau of Statistics (PBS) data showed.
Since Pakistan is a net importer of various commodities and other finished products, the international price hike would further escalate the demand for the dollar, which would also result in weakening of the local currency.
The rupee remained under pressure since the start of the current fiscal year, as it fell Rs14.09, or 8.94 per cent, from June 30, 2021 closing of Rs157.54 to the closing of Rs171.63 on November 9, 2021.
