KARACHI: The Pakistani rupee recouped some losses against the United States (US) dollar in the interbank market on Monday.
According to the State Bank of Pakistan (SBP), the domestic unit closed at Rs175.75 against the greenback, registering appreciation of 11 paisas over Friday’s close of Rs175.86.
Earlier, the State Bank of Pakistan (SBP) said foreign direct investment (FDI) declined by 34.65 per cent year-on-year in January 2022.
January attracted the foreign investment of $110 million, down 34.65 per cent compared to Jan 2021. The decline was even higher at 49.70pc when compared to December 2021.
This volatility aligns with the increasing trend noted by the Pakistan Stock Exchange (PSX) subsequent to the announcement of a scheduled National Assembly session aimed at formally forming a coalition administration including six parties and swearing in newly elected Members of Parliament. An IMF review is also applicable to the last installment payment of a loan program between the two parties.
Pakistan’s uneven trade is one of the primary causes of the rupee’s depreciation. Pakistan’s considerable shortfall in goods and services imports and exports leads to a substantial outflow of foreign exchange. Due to the fact that Pakistan needs more dollars to pay for imports than it does for exports, the trade deficit exerts pressure on the rupee.
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