KARACHI: A series of depreciation in the rupee value continued, as the local unit fell to a fresh low of Rs170.96 against the dollar on Wednesday.
The exchange rate ended at Rs170.96 against the greenback from the previous day’s closing of Rs170.80 in the interbank foreign exchange market.
The local currency witnessed a series of decline since the start of this fiscal year. The rupee/dollar parity recorded a decline of Rs13.42, or 8.51 per cent, since the closing of Rs157.54 against the dollar on June 30, 2021.
The fresh all-time low of the local currency can be attributed to the latest reports of massive rise in import bill during the first quarter of the current fiscal year.
The import bill of the country registered a record increase of 65 per cent to $18.63 billion during July–September of the current fiscal year, compared with $11.28 billion in the corresponding period of the last year.
The higher import bill also widened the trade deficit significantly. The trade deficit ballooned 100 per cent to $11.66 billion during the quarter under review, compared with the deficit of $5.81 billion in the same period of the last year.
The State Bank of Pakistan (SBP) has taken various measures in the last couple of weeks to discourage import of non-essential and luxury items and support the balance of payments position. However, these measures are apparently not fruitful to support the local currency.