Karachi: The Pakistani Rupee declined on the first day of the business week and the last day before banks close and the official Eid al Adha holidays begin.
The exchange rate of the US dollar against the Pakistani Rupee during the trading session touched a new height above Rs160 in the interbank market and was recorded at Rs161.48.
State Bank of Pakistan (SBP) data shows that the dollar cherished by Rs1.54 paisas in the interbank market taking PKR to a new low.
Note that this is the first time in recent months that the dollar has touched the level of Rs160.
The rupee then began to recover and has improved significantly against the US dollar over the past six months.
The rupee had traded at Rs 161.13 on January 16 this year, gaining Rs2.32 per dollar or 1.4 per cent.
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.
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 week at Rs160.3 - 161.5 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.