The Pakistani rupee has fallen against the US Dollar as financial market anxiety grows. This record-breaking drop worries investors and dealers. This essay will examine the recent exchange rate changes and their causes.
Rupee’s Fall
The rupee opened at 304.1 in the interbank market versus the US Dollar. The rupee fell to 308.225, shedding Rs. 4 versus the dollar, as pressure increased throughout the trading day. Concerning volatility traders on edge.
The rupee fluctuated throughout the day, momentarily reaching 305. However, uncertainty lingered and the rupee stabilised. Since the interim administration took control, the USD has gained Rs. 16.19 versus the PKR.
In the open market, currency counters had rates between 309 and 315. The PKR rose 0.06 percent to 305.64 but down 17 paisas versus the dollar.
Pakistan’s exports fell 4.8 percent to $2.36 billion in August 2023 from $2.48 billion in August 2022. Exports rose 14.3% from $2.07 billion the month before.
August 2023 imports were $4.49 billion, down 26% from August 2022’s $6.05 billion. Compared to July 2023, imports rose 21% to $3.71 billion.
Major Currencies’ Performance Against Rupee
Despite its troubles versus the US Dollar, the PKR outperformed many other major interbank currencies. Specifically, it gained 25 paisas versus the Australian Dollar (AUD), Rs. 1.33 against the Canadian Dollar (CAD), Rs. 1.45 against the British Pound (GBP), and Rs. 1.47 against the Euro.
The rupee’s record-low performance versus the US Dollar indicates a complicated economy with political uncertainties and trade imbalances. While the elections may provide clarity, currency issues are likely to linger, requiring traders and policymakers to be careful.