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Dollar reaches new all-time high at Rs169.6

The rupee fell to Rs169.63 in intra-day trading. Source: FILE.

KARACHI: Pakistani rupee lost further ground on Wednesday and fell to Rs169.63 in intra-day trading in the inter-bank market.

The decline comes a day after the local currency closed at an all-time low value of Rs168.94, according to the State Bank of Pakistan.

According to an update on Mettis Global, the Pakistani Rupee (PKR) depreciated by 46 paisa against the US dollar (USD) in early trade on higher demand for the American currency.

The dollar was being quoted at 169.40/169.60 (09:51 PST) with trades reported at 169.50. In the open market, the greenback peaked at Rs170.7.

After reaching a new high, the local currency made a slight recovery, gaining 60 paisa to close at Rs169 in the interbank, after an intervention by the State Bank of Pakistan.

Analysts said the current account for July 2021, coupled with the anticipation of further worsening of the deficit in August 2021, mounted pressure on rupee.

The uncertainty over the Afghanistan situation has also increased demand for dollars in the neighbouring country was also contributing to the fall in rupee. Rupee has maintained downturn since it touched a 22-month high of Rs152.27 in May 2021, losing a cumulative Rs17.36 in the past four months.

Import payments soared to historic high of around $6.4 billion in August while export earnings remained at around $2.2 billion.

The local currency has been losing purchasing power in the domestic market as well On August 26, 2020, the dollar hit Rs168.43. It started declining and reached Rs151.83 on May 14, 2021, but has since started rising.

The State Bank of Pakistan had indicated earlier that the dollar could appreciate during the current financial year due to an expected higher current account deficit.