Karachi – The Pakistani rupee experienced a modest decline of 20 paisas against the US dollar in the open market on Saturday, driven by increased demand during the weekly holiday.
The exchange rate for buying and selling hovered at Rs138.20/Rs138.70, compared to the previous day’s rate of Rs138.00/Rs138.50.
In the interbank foreign exchange market, the local currency faced pressure and depreciated by 16 paisas against the US dollar, concluding at an exchange rate of Rs138.40, as opposed to the previous day’s closing rate of Rs138.24. The day’s trading session in the interbank market commenced within the range of Rs138.25 and Rs138.35, reaching a high of Rs138.40 and a low of Rs138.30, ultimately closing at Rs138.40.
This slight dip in the rupee’s value comes amid the backdrop of a challenging fiscal situation that Pakistan has grappled with over the past year. The finance ministry highlights revaluation losses incurred due to the appreciation of international currencies against the US dollar, coupled with the depreciation of the Pakistani rupee against the greenback, which collectively contributed to an increase in the total public debt by approximately Rs 1.2 trillion.
The dynamics of foreign exchange markets are influenced by a multitude of factors, including economic conditions, trade balances, and geopolitical events. The weekly holiday demand is a common phenomenon affecting currency values, as businesses and individuals often engage in transactions, leading to fluctuations in exchange rates.
The exchange rate movements are closely monitored by various stakeholders, including traders, investors, and policymakers, as they have implications for the overall economic health of the country. A depreciating currency can impact inflation, trade balances, and the cost of imports, necessitating a vigilant approach from financial authorities.
While the rupee’s recent dip is relatively modest, it underscores the importance of continuous monitoring and management of the foreign exchange market to ensure stability and economic resilience. The finance ministry and relevant authorities will likely continue to implement measures to address the fiscal challenges and maintain a balance in the foreign exchange market.
As Pakistan navigates its fiscal landscape, economic stakeholders will closely watch for developments in the currency markets and assess the impact on various economic indicators. The resilience of the economy and the effectiveness of policy responses will be critical in steering the country through these challenges and fostering sustainable economic growth.
