The rupee fell to a new low against the dollar on Tuesday, closing at 181.73, down 0.26 percent from the previous day’s finish.
The rupee has lost 2.87 percent since the beginning of 2022, according to Arif Habib Ltd Head of Research Tahir Abbas.
The rise in oil and other commodity prices on the worldwide market, according to analysts, has increased demand for dollars. The local currency is also under strain as a result of the political instability.
Since the beginning of 2021-22, the rupee has lost 13.31% of its value. Since its most recent high on May 14, it has lost 16.21% of its value.
The rupee had lost 0.38 percent versus the dollar in the interbank market the day before, amid the opposition’s latest attempt to depose the prime minister.
Currency dealers say the State Bank of Pakistan intervened on Monday to stop the rupee’s drop on the first day of the week.
Despite a $0.5 billion current account deficit in February (compared to $2.5 billion in January), demand for the dollar remained strong due to abnormally high commodity prices.
“Oil prices have dropped from their highs and are currently sitting around $116 per barrel, but they are still quite high when compared to rates accessible six months ago,” a market trader stated.
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