The skyrocketing trade deficit hit rupee's winning streak
Pakistani rupee, once again, fell sharply on the interbank market against the US dollar on Thursday as the news of the skyrocketing trade deficit tumbled the stock market. The rupee depreciated by 0.53%.
According to the State Bank of Pakistan, the local currency recorded a drop of 94 paisas, pushing the greenback to the new high of Rs176.42.
Related: Currency rate on Friday, Dec 3
In the open market, the dollar rose by Rs1.3 and traded between Rs177.30 and Rs177.80.
Here are the open market rates of major currencies on December 2, 2021:
Earlier in the day, analysis of Pakistan’s imports revealed that in the first five months of the current fiscal year the trade deficit ballooned to $20.74b – the highest trade deficit recorded in a single month.
The situation has put the government in an awkward position as PM’s aide for Commerce and Investment Abdul Razak Dawood, on Wednesday, had tweeted the export data for November and said that the export stood at $2.9b against the target of $2.6b.
However, then it was revealed on Thursday that Pakistan’s import increased 72% pushing up the trade deficit, investors lost confidence.
The news has shaken the Pakistan Stock Exchange (PSX) and the trading session closed after offloading 2134.99 points Thursday. The market was suspended with the current index at 43234.15.