In interbank trading on Tuesday, the Pakistani rupee (PKR) lost Rs1.56 versus the US dollar and ended the day at Rs221.42 compared to the previous day’s closing of Rs219.86.
The purchasing and selling values of the dollar in the open market were reported at Rs 231 and Rs 233.5, respectively, according to the Forex Association of Pakistan (FAP).
In comparison to the previous day’s closing price of Rs217.86, the price of one Euro grew by Rs3.04 and reached Rs220.90.
The British pound’s exchange rate increased by Rs 4.29 to conclude at Rs 256.52 as opposed to its previous closing of Rs 252.23, while the Japanese Yen stayed constant to close at Rs 1.56.
Emirates Dirham and Saudi Riyal exchange rates each rose by 43 paisa to settle at Rs. 60.28 and Rs. 58.92, respectively.
Dr. Khaqan Hassan Najeeb, an economist and former consultant to the federal ministry of finance, claimed that recent political developments are partly to blame for the rupee’s decline, which is producing market anxiety in addition to the dollar’s worldwide strengthening.
He said that the State Bank of Pakistan’s (SBP) declining foreign reserve holdings were another factor in the decline. With only $7.8 billion in reserves, there is hardly enough money to cover a month’s worth of imports.
According to Arab News, the local unit’s decline was caused, among other things, by its smuggling to Afghanistan, where dealers receive greater prices, according to Exchange Companies Association of Pakistan (ECAP) General-Secretary Zafar Paracha.
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