Trading of Dollar against Pakistan’s Currency
Trading of Dollar against Pakistan’s Currency: In the process of trading the free-fall Pakistani rupee continue to decline in terms of the dollar. The US dollar is being traded at Rs 115.50 in the interbank market while stands ta Rs. 116 in the open market.
Dollar in the interbank foreign exchange market to went from 110.57 to 115 at the close of business. The 4.51% fall of a rupee in a day was the highest recorded depreciation in the currency’s value since 2008. However the dollar held firm against major currencies as traders look to whether the US Federal Reserve will indicate faster monetary tightening in the third Asian trade.
Reason Of Rise In Dollar
- The swell in dollar’s value has been credited to Pakistan’s dependence on imported goods.
- Pakistan’s imports amount up to $35 billion dollars while the exports stand at only $16 billion, leaving a huge gap between the payments received and made.
- As per State Bank of Pakistan’s Statistics, the country’s trade deficit stood at almost $20 billion in the last 8 months.
- State Bank of Pakistan is closely monitoring the fall of rupee and has credited the depreciation of fee to market forces.
The sharp fell of rupee by in relation to the dollar for buying and selling at Rs 114.30 and Rs 115.30 also saw the sliding versus the Euro, for buying and selling at Rs 139.00 and Rs 140.70. The Euro has increased by Rs 3.
UK currency pound after an increase of Rs. 4 stood at Rs 160.
The Saudi Riyal rate was fixed at Rs. 30.60 while UAE Dirham increased by 80 paisa ended the rate at Rs 31.20.
Some currency analysts have predicted that if the current gap between the import and export trade persists, rupee may face further devaluation in days to come.