As the US dollar continues to gain strength around the world and the dollar index, which compares the greenback to six major peers, hits a new 20-year high, the Pakistani rupee fell 2 versus the US dollar on Wednesday in the interbank market.
The currency decreased by Rs 2 from the previous day’s close of Rs 221.42 to conclude at Rs 223.42.
The dollar has been strengthening across the board for weeks, according to Saad bin Naseer, director of Mettis Global, a financial data and analytics platform, and its effects are being seen in Pakistan’s currency market as well.
He said that the UAE government’s rule requiring travellers from Pakistan to carry 5,000 dirhams in cash had also boosted demand for the dollar, claiming that this action alone had increased demand in the open market by $5 million per day.
“This is why the dollar is about Rs10 more expensive in the open market,” Naseer continued.
The recent floods, according to Naseer, had harmed the nation’s plantations and crops, requiring the government to purchase vegetables, which increased demand for the dollar and strained the trade imbalance.
Naseer expressed his confidence that Pakistan will soon get the $4 billion pledged by friendly nations, which would assist stabilise the value of the currency.
