Dollar rebounds against rupiah on import payment demand

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KARACHI: The dollar rebounded against the rupee by 47 paisa on Friday due to weekly demand and high oil prices.

The exchange rate ended at 175.86 rupees to the dollar from the previous day’s close at 175.39 rupees on the interbank foreign exchange market.

The rupiah made gains in the past two trading sessions as Russian-Ukrainian tensions eased.

Dealers said the rupiah was under pressure due to weekly dollar demand for import payment. The market will remain closed for two weekly public holidays.

Additionally, they said escalating tensions between Russia and Ukraine are keeping international oil prices higher. Benchmark Brent crude is still hovering above $90 in international markets.

Pakistan depends on the import of petroleum products to meet its domestic needs.

The country’s oil bill jumped 107% to $11.7 billion in the first seven months (July-January) of the current fiscal year, from $5.64 billion in the corresponding months last exercise.

Dealers said the ease of foreign exchange reserves also impacted the value of the rupee.

The country’s liquid foreign exchange reserves fell by $231 million to $23.49 billion in the week ending February 11, 2022, from $23.721 billion a week ago. Similarly, the official reserves of the State Bank of Pakistan (SBP) fell by $241 million to $17.096 billion in the week ending February 11, 2022, from $17.337 billion a year ago. one week.

The rupiah has remained under pressure since the start of the current fiscal year. The local unit registered an 18.32 rupees decline of 11.63% from 157.54 rupees on June 30, 2021 to the current level of 175.86 rupees.

The local currency fell to an all-time high at Rs 178.24 against the dollar on December 29, 2021.

In the open market, buying and selling of the dollar was recorded at Rs175.9 and Rs177.5 at 4:00 PM PST.

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