Recent volatility versus the US dollar has made news for the Pakistani rupee. Pakistani rupee fluctuates against the US dollar. When it rises, the rupee is stronger than the US dollar; when it falls, it’s weaker.
Recently, the rupee has struggled. A rough week saw it lose value versus the US dollar. Because the US dollar has been stretching its muscles internationally, other currencies like the rupee have lost strength.
The rupee touched 280.5 per dollar lately, its lowest ever. It’s weakest since early September.
This is when things become interesting. The success of the rupee is strongly connected to the IMF. Imagine the IMF as a financial superhero. Pakistan has received financial aid from it to improve its finances and make major improvements.
Like a bank, the IMF loans to desperate nations. Pakistan received IMF loan approval, which is vital to the rupee. It’s improving Pakistan’s money problems and strengthening the currency.
What will happen next week? Pakistan will be evaluated by the IMF on its reforms and money. A thumbs up will net Pakistan $700 million. It would strengthen the currency and help it climb again.
Pakistan had to purchase a lot of electronics, vehicles, and other goods, which weakened the rupee. The nation also made less money exporting its own commodities. If you spend a lot and earn little, your piggy bank becomes emptier.