KARACHI: The rupee sank to Rs179.22 on Tuesday due to import payments and political uncertainties, merchants said.
The interbank foreign exchange rate finished at Rs179.22, up from Rs178.98, the previous all-time low.
The traders said the no-confidence motion against the prime minister was generating political uncertainty.
The dollar’s strengthening against other regional currencies contributed to the rupee’s depreciation.
The dollar demand was also increasing owing to Ramazan imports.
The local FX market is extremely unpredictable due to fluctuating oil prices. Since the Russia-Ukraine war began on February 24, 2022, oil prices have fluctuated.
Recently, Brent crude has risen to over $140/barrel. At 3:55pm PST, it was trading at $105/barrel.
Pakistan is a net importer of petroleum products, therefore price changes immediately impact imports.
The petroleum group’s import cost increased by 107% to $11.7 billion in the first seven months of the current fiscal year, compared to $5.64 billion in the same period previous year.
