Pakistan currency drops 64 paisa against US dollar due to demand for import payments

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The Pakistani currency fell 64 paise against the dollar, due to strong demand for import payments on the last day of the trading week.

According to the country’s currency traders, the rupee weakened 0.40% against the dollar on Friday due to strong demand for the U.S. currency to pay for imports, The News International reported.

In the interbank market, the rupee closed at 159.94 per dollar, compared to 159.30 on Thursday. He dropped 64 paisas during the session.

“Today the outflows were higher than the inflows. The mismatch between demand and supply of dollars has added to the pressure on the national currency,” said a currency trader.

“There had been imports of petroleum, raw materials and machinery and equipment,” he added.

The rupee has lost 1.31% against the dollar since the start of this fiscal year. The increased demand for dollars, especially for oil payments, due to rising international prices, has driven the rupee down.

The rupee has fallen by 60 paisa on the sidewalk market. It ended at 160.30 to the dollar, down from 159.70 in the previous session, The News International also reported.

Pakistanis have been hit by inflation and have seen price hikes in several areas including gasoline and food.

Pakistan raised the price of sugar, wheat flour and ghee on Friday. Before that, he had raised the price of gasoline by Rs 5.40 per liter and that of high speed diesel (HSD) by Rs 2.54 per liter.

The price of sugar has increased from Rs 68 per kg to Rs 85 per kg, ghee (butter) from Rs 170 to Rs 260 per kg and wheat flour from Rs 850 per bag to Rs 950 per bag at USC due to the increase in the difference between the subsidized prices offered by the Utility Stores Corporation and the prevailing market prices.

According to a World Bank (WB) estimate, poverty in Pakistan fell from 4.4% to 5.4% in 2020, as more than two million people fell below the poverty line.

Using the lower middle income poverty rate, the WB estimated that the poverty rate in Pakistan was 39.3 percent in 2020-2021 and is expected to remain at 39.2 percent in 2021-2022 and could decline to 37.9 percent by 2022-2023, The News International reported.

(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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