Today’s rate of US dollar has increased in interbank trading as it continues to hold its ground against the Pakistani rupee and has maintained its upward trend.
The value of the greenback appreciated by Rs1.09 against the Pakistani rupee on Tuesday.
According to dealers in the forex market, the Pakistani rupee depreciated by Rs1.09 in its value during the early morning trade activity. The dollar traded at 217.70 after losing 1.05 against the greenback.
Interbank closing #ExchangeRate for todayhttps://t.co/8dAJCDM8S3 pic.twitter.com/KDnHdBBAi4
— SBP (@StateBank_Pak) August 22, 2022
On Monday, the rupee which during the last few sessions was showing robustness against the US dollar came under pressure and lost its value by Rs2.01 probably owing to the government decision regarding lifting the ban on the import of luxury items. Besides this, the exporters also wanted the government to keep the dollar rate near Rs216.
The ongoing political uncertainty is another factor that keeps dragging the local currency down.
Moreover, the sky-high inflation in the country, rising trade deficit and falling foreign exchange reserves are putting extreme pressure on the local currency.
The IMF tranche which is expected to reach Pakistan by the end-month is likely to give a much-needed boost to our economy and revive confidence in the value of the Pakistani rupee.
However, due to dampened demand from importers, the Pakistani rupee is anticipated to gain more ground this week versus the US dollar, according to analysts.
The currency of the South Asian country is expected to maintain its stability versus the dollar and other major currencies, according to analysts and market insiders.
It will be guided by the monetary policy decision made by the central bank on Monday. The confirmation of the $1.12 loan tranche payment by the International Monetary Fund (IMF) later this month will likely inspire optimism among currency dealers and market analysts.
The renewal of Pakistan’s $6b extended financial facility will be discussed and approved at a meeting of the IMF executive board on August 29. After suffering a large loss in value in July, the rupee has already regained 10.33pc of its value this month versus the US dollar and is anticipated to continue to rise.
In the interbank market, it ended the week at 214.65 after losing 0.31pc to the dollar.