Pakistani rupee slightly down against Dollar

According to the data released by the State Bank of Pakistan, PKR against US Dollar dejected by 31 paisas in the interbank market.

Interbank closing #ExchangeRate for today:https://t.co/hnRYFUM7hn pic.twitter.com/VHpj9Ywbd3

— SBP (@StateBank_Pak) July 5, 2021

Central bank data shows that the PKR devalued 0.20% against the dollar in the interbank market to close at Rs158.18.

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 Rs161.13 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 Rs157.8 - 158.5 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.