We learned this currency’s fall could trigger more inflows from the Pakistani diaspora. We think that the Pakistani rupee’s plummeting action versus the US dollar should not completely concern affected parties. This event happened when the Karachi Stock Exchange or KSE-100 Index had merely been moving in a narrow band of 1,000 points for plenty of weeks. Speculators viewed an opportunity in the foreign exchange market due to lackluster performance in other investment avenues and the increasing current account deficit.įurthermore, they took refuge in US dollar piles lately to generate returns as gold lost grip of its shine because of the greenback’s increasing value. Moreover, the strategy of US dollar holding has defeated both gold and stocks by a huge margin. This event increases the demand for US dollars by Afghan citizens via Pakistan’s market.

Tapering usually lifts the official currency of the United States as it suggests the US Federal Reserve System is one step near a tighter monetary policy.Īnother local factor impacting the Pakistani rupee negatively is the ongoing political uncertainty in Kabul, Afghanistan. With these facts, the US dollar will tend to surge in the future versus the leading currencies, including the Pakistani rupee, as the US central bank will commence tapering its asset purchase program. The US retail sales data from last month clarifies the US Federal Reserve System’s interest rate and tapering direction.

This event comes following the unexpected US retail sales figures that came last week in sharp contrast to a fear of a US economic growth slowdown. The US dollar has already reached an almost 21-day high versus the major currencies basket. This situation is happening, although an official account of what happened behind the scenes is absent. According to the Monday, Septemreport posted online by Pakistani news source The Express Tribune, in general, the odds involving the rupee are stacking versus the balance of payments and the Pakistani official currency’s long-term stability. We believe this latest report can enlighten and guide them regarding how they will conduct their forex activities this week. We want to share this foreign exchange news with our readers, especially those into trading US dollars and Pakistani rupees. This event occurred before the Pakistani central bank State Bank of Pakistan intervened to curb speculators’ excitement. In the foreign exchange market, the rout intensified and hit a multi-year low of 169 rupees. The sources said that the IMF Executive Board meeting is likely to be held on August 29, 2022.A recent slide in the Pakistani rupee against the basket of main currencies, primarily the US dollar, has made financial news headlines lately. The finance ministry said that the IMF will now review the data provided by Pakistan at its board meeting and release the billion-dollar tranche.Īfter the IMF board review, the State Bank of Pakistan (SBP) Acting Governor and Federal Minister for Finance will sign the final draft. The Ministry of Finance said that the Pakistan government had sent a letter of acceptance to the IMF on Monday.

The Pakistani currency is expected to perform much better in the coming days as sources in the Ministry of Finance have confirmed that all obstacles to the loan revival agreement between Pakistan and the IMF have been removed. On Wednesday, the US dollar appreciated by 98 paisas which took its rate to Rs214.88 at the end of the day. The rupee lost its steam yesterday probably as still about ten days to go to the IMF board meeting which will be held at the month-end to decide about reviving the Pakistan’s loan programme.Īccording to the forex dealers, the US dollar gained a meagre 12 paisas against the Pakistani rupee in the morning and was currently being traded at Rs215. The US dollar on Thursday pressed ahead with its renewed upward journey against the Pakistani rupee as the greenback appreciated by 12 paisas in early interbank trading on Thursday.

Us dollar to pakistani rupee