Karachi, August 9, 2023 – The Pakistani Rupee (PKR) made a recovery of 45 paisas against the US Dollar, closing at PKR 287.46 in the interbank foreign exchange market on Wednesday.
This follows the exchange rate of PKR 287.91 to the dollar the day before.
READ MORE: Pakistani Rupee Slides to PKR 287.91 Against US Dollar
Currency market experts suggest that the central bank intervened to stabilize the value of the rupee just before the dissolution of the national assembly. However, they note that the rupee remains under pressure due to a shortage of US dollars and lower foreign exchange reserves.
A recent move by the State Bank of Pakistan (SBP) to permit commercial banks to initiate import payments through the opening of letters of credit has also added pressure to the local currency. Adding to the challenges, declining foreign exchange reserves have put strain on the exchange rate. By July 27, 2023, Pakistan’s foreign exchange reserves had decreased to $13.464 billion, showing a decline of $70 million from the previous week. The State Bank of Pakistan’s reserves were at $8.154 billion, marking a $32 million decrease from the prior week.
READ MORE: Pakistani Rupee Drops Against US Dollar on High Demand
To address these economic concerns and boost reserves, Finance Minister Muhammad Ishaq Dar has unveiled plans to increase reserves to $15 billion within the next seven weeks. The government is actively monitoring the situation and is ready to take further measures to counter the impact of the rupee’s depreciation. However, it’s important to consider that global economic conditions will play a pivotal role in determining the PKR’s performance against major currencies.
READ MORE: Rupee Extends Gains Against Dollar, Closing at PKR 286.97 in Interbank Market
Market participants, investors, and traders are advised to exercise caution and stay informed about foreign exchange rates. Currency fluctuations can have widespread effects on trade, investments, and the overall economy.
As the situation remains dynamic, businesses within Pakistan are closely observing the foreign exchange market. The government’s efforts to bolster reserves and global economic factors will significantly influence the PKR’s performance against the US dollar and other key currencies.
READ MORE: Rupee Makes Strong Comeback Against Dollar After Three-Day Slump
