Optimism reversed: Pakistani rupee registers minor decline against US dollar

• Pakistani rupee declines and closes at a new one-week low.
• Local currency closes at Rs207.48 in interbank market against US dollar.
• Rupee had made a recovery of 2.27% a day prior. 

KARACHI: After posting the largest recovery on a single day one day prior, the Pakistani rupee once again underwent a decline and closed at a new one-week low on Friday. 

According to the State Bank of Pakistan (SBP), the local currency closed at Rs207.48 in the interbank market against the US dollar. The previous day's close was Rs207.23 against the greenback. The rupee depreciated by 0.12%. 

The local currency recovered by 2.27% a day ago in line with the expectations of market analysts who foresaw that the rupee would witness a correction as it was trading at 208-209.50 against the dollar in the TOM (one-day forward) market.

Since the beginning of this fiscal year (July 1, 2021) to date, the rupee has collectively dropped by a massive 31.69% (or Rs49.94) compared to the previous fiscal year’s close at Rs157.54.

The rupee has maintained a downward trend for the last 13 months. It has lost 36.25% (or Rs55.21) to date, compared to the record high of Rs152.27 recorded in May 2021.

Today's decline was attributed to the announcement made by Prime Minister Shehbaz Sharif's regarding the imposition of a 10% super tax on sectors including sugar, oil and gas, cement, steel, airlines, fertilisers, LNG terminals, textile, banking, automobile, cigarettes, beverages, and chemicals.