KARACHI: The Pak Rupee fell sharply by 28 paisas against US dollar in early trade on Tuesday owing to latest border violation by Indian air force.
Indian military planes violated the Line of Control (LoC), intruding from the Muzaffarabad sector, Director-General Inter-Services Public Relations Major-General Asif Ghafoor said on his official Twitter account early on Tuesday.
Following the mounting tension at border the financial markets witnessed deterioration.
The dollar is being traded at Rs138.86 in interbank foreign exchange market. The exchange was ended last day at Rs138.58 to the dollar.
Earlier on last Friday, the Pak Rupee gained for the third consecutive day against dollar owing to shrinking current account deficit and foreign inflows.
The rupee ended with gain of eight paisas to end at Rs138.55 to the dollar as compared with previous day’s closing of Rs138.63 in interbank foreign exchange market.
The rupee maintained gains for the third consecutive day as exchange rate was reached to Rs138.92 to the dollar on February 19, 2019.
Pakistan’s current account deficit has narrowed by 16.8 percent to $8.424 billion owing to declining imports and improved foreign remittances.
According to statistics released by State Bank of Pakistan (SBP), the current account deficit narrowed to $8.424 billion during July – January 2018/2019 as compared with the deficit of $10.124 billion in the corresponding period of the last fiscal year.
In the open market the local unit, however, maintained level.
Pakistani residence may be allowed to open foreign cureency account in canadian dollar, uae dirham and saudi ryal instead of only USD and Pound. Major pakistani are are working in canada uae and saudia sending money to pakistan through hawalla fue to double cinversation of currency by the bank. This will booste the reserve of foreign curency reserve. State bank must issue cicular and notification in this regard.