Karachi
The Rupee experienced a devaluation of 08 paisa against the US dollar in interbank trading on Wednesday (April 3), closing at Rs277.91 compared to the previous day’s Rs277.83. This decline reflects heightened demand for foreign currency, driven by import obligations and repatriation of profits by foreign companies.
According to the Forex Association of Pakistan (FAP), the open market rates for the dollar stood at Rs278 for buying and Rs281.75 for selling.
Foreign companies operating in Pakistan are actively purchasing dollars to repatriate quarterly profits, adding pressure to the local currency. Additionally, increased import payments have further fueled the demand for the dollar.
Despite this recent depreciation, the rupee has shown gains against the dollar in recent weeks, primarily due to a decrease in overall imports during the current fiscal year. Notably, the Pakistan Bureau of Statistics (PBS) reported a 9 per cent growth rate in exports during the first nine months of the fiscal year 2023-24, reaching $22.91 billion.
However, despite the recent depreciation, the rupee had experienced gains against the dollar over the past couple of weeks, largely due to a decline in overall imports during the first nine months of the current fiscal year.
The Pakistan Bureau of Statistics (PBS) reported a notable increase in exports, with a growth rate of 9 percent during the first nine months (July – March) of the fiscal year 2023-24. Exports during this period reached $22.91 billion, up from $21.04 billion in the corresponding months of the previous fiscal year.
In addition to the US dollar, other currencies also experienced fluctuations. The Euro increased by 92 paisa to close at Rs299.34, while the British pound saw a 48 paisa rise, closing at Rs349.24. The Emirates dirham and the Saudi riyal also witnessed slight increases, reflecting the interconnectedness of global currencies and the various factors influencing their values.