Business
US dollar drops as lockdown begins
Karachi: The US dollar continued to decline on the last day of the business week and before the Eid holiday cum Lockdown begins— in the Interbank Foreign Exchange market.
The exchange rate of the US dollar against the Pakistani Rupee during the trading session fell below Rs153 in the interbank market and was recorded at Rs152.28.
State Bank of Pakistan data shows that the dollar depreciated by 32 paisas in the interbank market taking USD to a new low.
Note that this is the first time since March 6, 2020, that the dollar has fallen below the level of Rs155.
It may be recalled that during the current financial year, the exchange rate fluctuated sharply and in August 2020 (FY 21), the rupee depreciated to its lowest level against the dollar, reaching Rs168.70 on August 20 last year.
The rupee then began to recover and has improved significantly against the US dollar over the past four months.
The rupee had traded at Rs 161.13 on January 16 this year, gaining Rs2.32 per dollar or 1.4 per cent. On February 12, the dollar traded at Rs158.81 in the interbank market, the lowest level in three months.
It should also be noted that the depreciation of the dollar and the appreciation of the rupee came at a time when the International Monetary Fund (IMF) delayed its program for Pakistan for more than a year.
“The supply and demand position of dollars and the upcoming data on the country’s forex reserves will determine the future direction of the rupee. The rupee should conclude this month at Rs152.2 - 153.5 per dollar,” said a currency exchange dealer.
It is important to mention that the Pakistani Rupee appreciates when a lesser amount of rupees is required to get one USD whereas PKR depreciates when more rupees are required to get one greenback.