Karachi, August 8, 2023 – The Pakistani Rupee (PKR) faced a decline of 48 paisas against the US dollar, closing at PKR 287.91 in the interbank foreign exchange market.
This depreciation follows the previous day’s closing rate of PKR 287.43.
READ MORE: Pakistani Rupee Drops Against US Dollar on High Demand
Experts in the currency market have attributed this slide to increasing demand for the US dollar for import and corporate payments. The recent relaxation provided by the State Bank of Pakistan (SBP), allowing commercial banks to initiate import payments through the opening of letters of credit, has also contributed to the pressure on the local currency.
Adding to the challenges, the falling foreign exchange reserves have also placed strain on the exchange rate. As of July 27, 2023, Pakistan’s foreign exchange reserves dropped to $13.464 billion, representing a $70 million decrease from the previous week. The State Bank of Pakistan’s reserves stood at $8.154 billion, marking a $32 million decline from the previous week’s figures.
READ MORE: Rupee Extends Gains Against Dollar, Closing at PKR 286.97 in Interbank Market
To address these economic concerns and bolster reserves, Finance Minister Muhammad Ishaq Dar has outlined plans to elevate reserves to $15 billion within the next seven weeks. The government remains vigilant in monitoring the situation and stands prepared to take further measures to mitigate the impact of the rupee’s depreciation. However, it’s important to note that global economic conditions will play a pivotal role in determining the trajectory of the PKR against other major currencies.
READ MORE: Rupee Makes Strong Comeback Against Dollar After Three-Day Slump
Market participants, investors, and traders are advised to exercise caution and stay well-informed about foreign exchange rates. Fluctuations in currency values can have far-reaching implications for trade, investments, and the overall economic landscape. As the situation remains fluid, businesses within Pakistan are closely observing the foreign exchange market. The government’s efforts to enhance reserves and global economic factors will significantly influence the PKR’s performance in relation to the US dollar and other key currencies.
READ MORE: PKR Falls for Third Straight Day Against Dollar, Ends at PKR 289.38
