ISLAMABAD, August 16, 2023 – The Pakistani currency faced further depreciation against the US dollar, marking a decline of Rs2.99 in interbank trading on Wednesday. This downward trajectory follows a similar trend from the previous day, as economic uncertainties continue to impact the country’s financial landscape.
By midday today, the exchange rate stood at approximately Rs294.50 per USD, according to data compiled by the Exchange Companies Association of Pakistan (ECAP). Meanwhile, in the open market, the US dollar was being traded at a rate of Rs303.50.
In a report from Tuesday, the State Bank of Pakistan (SBP) revealed an exchange rate of Rs291.51 by day’s end. The rapid decline in the value of the Pakistani rupee over a short period is causing concerns among financial experts and the general public alike.
The recent dissolution of assemblies on August 9 has been identified as a key factor contributing to the rupee’s downward trend. Market insiders have speculated that the previous coalition government intentionally maintained a controlled exchange rate to preserve political capital. With the anticipation of the incoming interim government, experts forecasted that the US dollar would strengthen against the Pakistani rupee.
The rupee had exhibited stability over the past three months, with an exchange rate of approximately Rs288 against the US dollar. However, the recent shift indicates a notable departure from this stability, raising questions about the economic policies and measures that will be undertaken by the new administration to stabilize the currency.
Economic analysts and policymakers are closely monitoring the situation as the country navigates these currency fluctuations and their potential implications for trade, investment, and overall economic growth.
