KARACHI: The open market exchange rates of various foreign currencies against the Pakistani Rupee (PKR) witnessed notable fluctuations on July 1, 2022.
As per market data updated at 01:04 PM Pakistan Standard Time, several key foreign currencies experienced mild to moderate shifts in value, reflecting both domestic market conditions and global economic trends.
The US Dollar (USD), which remains the most closely watched foreign currency in Pakistan, was being bought at PKR 203.50 and sold at PKR 205.50. This continued strength of the dollar underscores growing concerns among importers and economic analysts, particularly in light of inflationary pressures and rising trade deficits.
The UK Pound Sterling (GBP) was trading between PKR 245.00 (buying) and PKR 248.00 (selling), maintaining its position as one of the strongest foreign currencies in the market. Similarly, the Euro (EUR) showed resilience, with buying at PKR 211.00 and selling at PKR 213.00. The strengthening of European currencies comes amid fresh reports of recovery in the Eurozone post-COVID-19 slowdowns.
Among regional currencies, the Saudi Riyal (SAR) stood at PKR 53.40 for buying and PKR 54.20 for selling, while the UAE Dirham (AED) was quoted at PKR 55.00 and PKR 55.90 respectively. These rates are especially significant for Pakistani expatriates in the Gulf who frequently send remittances back home in these foreign currencies.
Asian currencies like the Chinese Yuan (CNY), trading at PKR 30.54 (buying) and PKR 30.79 (selling), and the Japanese Yen (JPY), quoted at PKR 1.40 and PKR 1.45 respectively, remained relatively stable. However, analysts suggest that shifts in international oil prices and monetary policy changes by major economies could influence future exchange rates of these foreign currencies.
The continued volatility in foreign currency rates has raised concerns among traders, travelers, and overseas Pakistanis. Currency exchange companies have also reported increased activity as the public seeks to hedge against potential devaluation of the rupee.
Financial experts urge the government and the State Bank of Pakistan to implement firm policy measures to stabilize the local currency and protect against speculative attacks that could worsen the foreign exchange reserves. As foreign currency rates continue to impact import bills, external debt, and consumer prices, maintaining a balanced exchange rate policy remains crucial for economic stability.