In recent days, the Pakistani rupee dropped for the second time in a row versus the US dollar and other currencies. This decreasing trend has raised worries and implications for foreign payments since the rupee started trading at 276 in the interbank market.
As the day proceeded, the rupee’s performance continued to decline. By 11:30 PM, it was trading at roughly 279 versus the US dollar following a big loss of approximately Rs. 3.25 Versus the dollar.
Despite recent declines, the spread between interbank and open market rates has shrunk by Rs. 63 since September 4. Rates varied over this time, going as low as 276 and briefly hitting 281 today.
Over a longer time, the rupee has dropped significantly, losing over Rs. 62 since January 2023 and more than Rs. 109 versus the US dollar since April 2022.
The US dollar suffered small changes throughout the world. It had surged the day before, but Chinese economic data enabled it to level off.
According to Reuters, the US dollar index increased slightly to 106.3. The US dollar is compared to six other major currencies in this index. Despite a 0.53 percent advance on Tuesday, it remains behind its 11-month high of 107.34 set last week.
The Pakistani rupee suffered losses against a variety of major currencies in the interbank market. It fell 86 paisas against the Saudi Riyal (SAR), 86 paisas against the UAE Dirham (AED), 2.31 paisas against the Canadian Dollar (CAD), 2.76 paisas against the Australian Dollar (AUD), 4.38 paisas against the Euro (EUR), and 4.81 paisas against the British Pound (GBP).
Currency swings reflect the volatile character of the global economy, which has an influence on Pakistan’s financial environment.