Rupee weakens against dollar

The rupee weakened against the US dollar at Rs174.5 in the inter-bank market on Tuesday compared with Monday’s close of Rs174.47, according to the State Bank of Pakistan (SBP). On December 29, 2021 the rupee hit an all-time low of Rs178.24 against the greenback as demand for the dollar stood higher compared to its supply in the wake of an expanding current account deficit, swelling imports, rising global commodity prices and uncertainty about the resumption of IMF loan programme. Earlier, the announcement of $3 billion cash deposit by Saudi Arabia in the State Bank helped the rupee to appreciate, however, the recovery proved short-lived. The rupee had been on the downtrend since hitting 22-month high of Rs152.27 in May 2021.

Published in The Express Tribune, February 9^th, 2022.

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