KARACHI – The Pakistan Rupee experienced a depreciation of 16 paisas against the US dollar on Friday, primarily driven by heightened demand from importers and corporate buyers.
The exchange rate concluded at Rs138.40 to the dollar, marking an increase from the previous day’s closing of Rs138.24 in the interbank foreign exchange market.
The interbank foreign exchange market opened within the range of Rs138.25 and Rs138.35, reflecting the initial trading dynamics. Throughout the day, the market observed fluctuations, with the exchange rate reaching a high of Rs138.40 and a low of Rs138.30 before closing at Rs138.40.
The depreciation trend extended to the open market, where the rupee weakened by 20 paisas against the dollar. The buying and selling rates for the dollar were recorded at Rs138.00 and Rs138.50, respectively. This shift was notable compared to the previous day’s closing rates of Rs137.80 and Rs138.30 in the cash-free market.
The challenging fiscal situation faced by Pakistan over the past year has contributed to the fluctuations in the exchange rate. The finance ministry attributes revaluation losses to the appreciation of international currencies against the US dollar and the concurrent depreciation of the Pakistani Rupee against the greenback. These factors have collectively contributed to an increase of approximately Rs 1.2 trillion in the total public debt.
The economic landscape in Pakistan has been marked by various challenges, including external pressures and fluctuations in currency values. The sensitivity of the exchange rate to factors such as demand from importers and corporate buyers underscores the delicate balance required to maintain stability in the foreign exchange market.
As Pakistan navigates these economic challenges, the central bank and relevant authorities are likely to closely monitor market dynamics and implement measures to address potential imbalances. The flexibility of the exchange rate, coupled with strategic interventions, plays a crucial role in managing external pressures and fostering economic resilience.
Market participants, including investors and businesses engaged in international trade, will continue to monitor the exchange rate closely. The ability to adapt to changing economic conditions, coupled with proactive decision-making, will be essential for stakeholders seeking to navigate the evolving financial landscape.
The fluctuations in the exchange rate serve as a reminder of the interconnectedness of global markets and the need for comprehensive economic strategies. As Pakistan strives for economic stability and growth, continued vigilance and timely interventions will be key to mitigating challenges and ensuring a robust financial future.
