On August 7, 2023, the Pakistani Rupee (PKR) lost value compared to the US dollar. It went down by 46 paisas in the interbank foreign exchange market, ending at PKR 287.43 to the dollar.
This happened because there was a high demand for dollars to pay for imports and corporate expenses. Also, the country’s foreign exchange reserves decreased, which contributed to the rupee’s fall.
READ MORE: Rupee Extends Gains Against Dollar, Closing at PKR 286.97 in Interbank Market
As of July 27, 2023, Pakistan’s foreign exchange reserves dropped to $13.464 billion, down by $70 million from the previous week. The State Bank of Pakistan (SBP) had $8.154 billion in reserves, which was $32 million less than the week before.
READ MORE: Rupee Makes Strong Comeback Against Dollar After Three-Day Slump
To tackle these economic challenges and improve reserves, the Finance Minister, Muhammad Ishaq Dar, plans to raise reserves to $15 billion in the next seven weeks. The government is keeping a close eye on the situation and is ready to take further actions to lessen the impact of the rupee’s decline. However, global economic conditions will also influence the PKR’s performance against other major currencies.
READ MORE: PKR Falls for Third Straight Day Against Dollar, Ends at PKR 289.38
People in the market, investors, and traders are advised to be cautious and stay updated about foreign exchange rates. Changes in currency value can affect trade, investments, and the overall economy. The situation is continually changing, and businesses in Pakistan are closely monitoring the foreign exchange market. The government’s efforts to improve reserves and global economic conditions will play a significant role in determining the PKR’s performance against the US dollar and other currencies.
READ MORE: Rupee Continues to Dwindle Against US Dollar, Closes at PKR 287.54 in Interbank Battle
