Karachi, July 5, 2023: The US dollar made a strong comeback in the Pakistani currency market on Wednesday, recovering from a significant fall against the Pakistan Rupee (PKR) the previous day. The exchange rate witnessed a PKR 1.97 depreciation in the rupee’s value, closing at PKR 277.41 to the dollar compared to the previous day’s rate of PKR 275.44 in the interbank foreign exchange market.
Currency experts attributed the resurgence of the dollar to increased demand for the currency due to import and corporate payments. They noted that many foreign companies were repatriating profits and dividends to their parent companies at the end of the quarter, contributing to the surge in dollar demand. Additionally, the State Bank of Pakistan (SBP) lifting the condition on import payments also resulted in higher demand for the greenback.
The dollar’s rebound came after a remarkable performance by the Pakistani Rupee the day before when it gained PKR 10.55 against the US dollar in the interbank foreign exchange market. The exchange rate witnessed a substantial PKR 10.55 increase in the rupee’s value, closing at PKR 275.44 to the dollar compared to the previous closing rate of PKR 285.99 on June 27, 2023.
The sudden shift in exchange rates over the past two days has captured the attention of investors and businesses alike. Market participants are closely monitoring these fluctuations, which can have significant implications for trade, investment, and the overall economy.
The currency market in Pakistan remains susceptible to various factors, including economic conditions, geopolitical developments, and global market trends. As such, market participants are advised to stay vigilant and adapt to the dynamic nature of the foreign exchange market to mitigate risks and maximize opportunities.
The State Bank of Pakistan, as the country’s central bank, continues to closely monitor the currency market and take necessary measures to ensure stability and facilitate smooth transactions. The bank’s interventions and policies aim to strike a balance between promoting exports, attracting foreign investment, and maintaining a competitive exchange rate.
As the situation unfolds, market participants and observers eagerly await further developments and their potential impact on the Pakistani economy.
READ MORE: Pakistani Rupee Crushes US Dollar, Gains PKR 10.55 at Interbank Closing
