Pakistani rupee to stay under pressure next week
Islamabad [Pakistan], February 27 (ANI): The Ukraine crisis is expected to weigh on the Pakistan currency as a large current account deficit, surging energy and oil prices, and volatility in financial markets will likely put the Pakistani rupee under pressure next week, local media reported citing analysts.
ANI
Feb 27, 2022 13:03 IST
Islamabad [Pakistan], February 27 (ANI): The Ukraine crisis is expected to weigh on the Pakistan currency as a large current account deficit, surging energy and oil prices, and volatility in financial markets will likely put the Pakistani rupee under pressure next week, local media reported citing analysts.
Pakistan's current account deficit of USD 2.5 billion, which is at an all-time high, seems to be the prime worry amid high global oil and other commodity prices, reported Geo News.
In a situation when imports are growing at a faster pace than exports, this deficit is increasing Pakistan's dependence on foreign loans to meet its financial requirements.
In the previous week, the local unit fell by 1.36 rupees or 0.77 per cent against the dollar, the media outlet reported adding that it started the week on 175.75 per dollar and closed at 177.11 on Friday.
"The foreign exchange market is concerned about the increasing pressure on the balance of payments, despite the fact that the central bank has said there is enough financing available to fund the deficit and the foreign exchange reserves are also at a comfortable level," the media outlet quoted a forex trader as saying.
"The uncertainty related to the current account and the geopolitical tension will exert pressure on the rupee in the coming week," he added.
The crisis had brought in a surge in commodities, and the rise in oil and energy prices were going to translate into elevated inflation level, Geo News quoted a Tresmark analyst who added that with Ramadan around the corner, food prices will also surge. (ANI)
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