Dollar trading at historic Rs189 in inter bank market

By Muhammad JuniadPublished On 05 Jan 2023

Political turmoil in the country continues coupled with widening trade and the International Monetary Fund’s refusal to deal with the interim government has pushed the value of the rupee to a historic low against the US dollar.

The dollar rate in the interbank market reached a historic Rs189 on Thursday after an increase of up to Rs2.87.

In the last three days, the value of the dollar has increased by Rs4.87.

Similarly, in the open market, the dollar is currently being traded at Rs189 after witnessing an increase of Rs1.7.

The Pakistani rupee has been under pressure against the US dollar for the last few months but the pressure has increased significantly since Monday due to political upheaval in the country after Prime Minister Imran Khan dissolved the assembly following a controversial decision by Deputy Speaker of National Assembly Qasim Suri to disallow the opposition’s no-confidence motion against the prime minister.

According to experts, Pakistan’s foreign exchange reserves are depleting due to increasing trade and current account deficits. This is in turn putting the Pakistani rupee under pressure. Besides economic worries, the political turmoil is also adding to the problems.