The high current account deficit caused by burgeoning import bill is expected to be a major drag for the currency.Īnalysts see the current account gap in FY2022 to clock in the range of $13-14 billion, significantly breaching the SBP’s current forecast. Trade gap climbed 117 percent to $20.8 billion in the five months of this fiscal year with exports reaching $12.4 billion and imports $33.1 billion, respectively. Exports rose 34 percent year-on-year to $2.9 billion, while imports soared 95 percent YoY to $8 billion. The country reported the highest-ever monthly trade deficit of $5.1 billion in November. The macroeconomic fundamentals have also hurt the domestic currency.

It also banned inbound travel to Pakistan from seven countries where the infection cases had been reported. This could pose a threat to the economic growth’s prospects.” He added: “Any disruption in the global supply chain could fuel the inflationary pressures.” The government has expanded the Covid-19 vaccination drive amid fears of the Omicron. They feared the country braces for a lockdown if any case is detected. One foreign exchange dealer said: “We saw a fresh increase in the demand for the greenback in the market because the investors assessed the risk associated with the Omicron variant. The rupee traded at 178 versus the greenback, compared with 177 in the previous session. The local currency fell one rupee against the dollar in the open market. The country's debts increased by Rs2,300 bn while Euro, Pound similarly gained value. The drop in KSE, rupee value and rise in gold value completed the triple whammy for the country amidst the ruling negative sentiments. Similarly, 10-gram gold price also increased by Rs729 to Rs106,010. According to the data released by the All Sindh Saraf Jewelers Association (ASSJA), gold rates in the local market moved up to Rs123,650 per tola. At the same time, gold rates in the local market increased by Rs850 per tola. The rupee's historic plunge combined with Black Thursday's carnage at the KSE 100 index wiped off $1.9 billion, equivalent of Rs332 billion, in losses to investors in share values, due to economic fallout from blooming trade deficit and scares of another rate hike, dealers said. A previous record low of Rs176.20 was set on Monday. The rupee had ended at Rs175.48 to the dollar on Wednesday. KARACHI: The rupee closed to an all-time low of 176.42 against the dollar on Thursday as investors, worried about the outlook for the country’s economy amid the emergence of the new coronavirus variant and deepening concerns over the current account deficit, saw carnage at the KSE 100 index that recorded the 'third largest one-day loss ever' of 2,134.99 points or 4.71 percent.

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