On Monday, the dollar climbed above Rs194 versus the rupee in the interbank market, as analysts expressed concern about the country’s mounting import bill.<\/p>\n\n\n\n
The greenback gained Rs1.30 from Friday’s close in interbank trade to reach Rs194.30 about 11:30 a.m., according to the Forex Association of Pakistan (FAP).<\/p>\n\n\n\n
This comes after the rupee fell to fresh lows last week, owing to the country’s mounting import bill.<\/p>\n\n\n\n
The dollar was worth Rs182.3 when the PML-N-led coalition government gained power on April 11. The rupee has lost Rs11.4 or 6.2 percent of its value since then.<\/p>\n\n\n\n
The greenback had closed at Rs193 according to FAP estimates. The rupee’s depreciation is primarily due to an uncontrolled increase in imports combined with a slower rate of growth in exports. The trade deficit, which reached $39 billion in July-April, reflects this.<\/p>\n\n\n\n
Meanwhile, the central bank’s foreign exchange holdings have fallen to $10.3 billion, the lowest level since June 2020. The import cover, which indicates a country’s ability to pay for foreign purchases in international currency, has dropped to a pitiful 1.54 months.<\/p>\n\n\n\n