The value of the Pakistani rupee against the United States dollar in the opening hours of Wednesday’s trading session was around the 231-232 level, continuing its downward trend from the previous day.
The intraday rate for the rupee as of 10:40 AM was 231.96, a decrease of Rs 0.4 (or 0.2%) against the dollar.
The Pakistani rupee fell for the eighth straight trading day against the US dollar on Tuesday, closing down 0.91 percent at 231.92 in the inter-bank market. This comes as investors continue to fret over the country’s widening trade deficit.
There has been fresh pressure on the rupee versus the dollar in recent days. Experts in the market attribute this mostly to the rising demand for imported foods and the growing US dollar index.
Federal Minister for Finance Miftah Ismail has stated confidence that a series of policy measures to be introduced in the coming days will stabilize the currency market.
Another noteworthy event occurred on Tuesday when the State Bank of Pakistan (SBP) abruptly revoked the licenses of two exchange companies for failing to comply with regulatory directives.
Due to “severe violations of regulatory directives,” the organization said in a statement that it would be suspending the operations of Swiss International Exchange Company-B (Pvt.) Limited and Great Union Exchange Company-B (Pvt.) Limited for three months.
After rising 1.5% overnight, its largest one-day percentage rise since March 2020, the dollar index, which measures the dollar’s value against six major counterparts including the yen, euro, and sterling, was little changed at 109.77 on Tuesday.
Rising U.S. yields are contributing to the increase after predictions of further Federal Reserve monetary tightening next week were buoyed by data showing inflation is running hotter than projected.
However, despite a healthy OPEC oil demand growth estimate, oil prices, a key indicator of currency parity, inched lower on Wednesday due to worries of another US Federal Reserve interest rate hike next week after consumer prices unexpectedly jumped in August.
Mahnur is MS(development Studies)Student at NUST University, completed BS Hons in Eng Literature. Content Writer, Policy analyst, Climate Change specialist, Teacher, HR Recruiter.
