KARACHI: Despite intervention from the State Bank of Pakistan (SBP), the rupee closed marginally lower in the inter-bank market on Friday with a widening trade deficit continuing to take a toll on the currency.
According to data released by the central bank, the local currency closed at Rs175.86 against the US dollar in the interbank market. The reversal comes on the back of widening current account deficit and rising oil prices in the international markets, raising concerns of a spike in import figures.
With the fresh decline of 0.27%, the Pakistani rupee has depreciated by 11.62% (or Rs18.32) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed. The rupee had maintained a downward trend for the past nine months. It has lost 15.49% (or Rs23.59) to date, compared to the record high of Rs152.27 recorded in May 2021.
On Thursday, the central bank conducted an Open Market Operation, Reverse Repo Purchase (Injection) to stabilize the rupee-dollar parity. It is pertinent to mention here that this was not for the first time that the central bank has pumped money into the inter-bank market to artificially defend the rupee.