Karachi: The rupee’s losses on Tuesday were not alleviated by falling to Rs 175.78 against the US dollar on uncertain geopolitical conditions and higher oil prices.
The rupee closed at 175.47 rupees on Monday, according to the State Bank of Pakistan (SBP).
Tahir Abbas, head of research at Arif Habib Limited, told Geo.tv that the local currency is under pressure due to two main reasons – geopolitical conditions and rising oil prices.
“Rising international geopolitical tensions in Ukraine have sparked turmoil in the local currency market as traders worry about a drop in exports if Russia invades Ukraine,” he said.
Elaborating on the second reason, he said traders were also concerned about higher import payments as oil prices in international markets recently surged to a seven-year high.
Data released by the central bank showed that the Pakistani rupee has depreciated by 0.18% and 11.57% (or 18.24 rupees) since the start of the fiscal year on July 1, 2021.
The rupee has been on a downward trend for the past nine months. It is down 15.43% (or Rs 23.51) year-to-date from its all-time high of Rs 152.27 in May 2021.