The US dollar continued its growth against the rupee on Tuesday, rising above the R197 trade between banks and marking the end of a record-breaking week, largely due to rising domestic production and the end of foreign exchange reserves.
According to the Pakistan Forex Association (FAP), the greenback gained Rs1.10 from the previous closing day of Rs196.50 and climbed to Rs197.60 around 10:15 am.
The current dollar dollar continuous spell of the rupee rise began on Tuesday last week, when the international currency reached a record high of 188,66. It went up to R190.90 on Wednesday, up from R192 on Thursday, up to R193.10 on Friday, up from R194 on Monday and up from R196 yesterday (Tuesday).
While FAP data showed that the greenback closed Rs196.50 on Tuesday, a It was morning The report quoted the Pakistani State Bank at a closing rate of Rs195.74 – a figure indicating that the US currency was closing at a psychological barrier of Rs200.
Another It was morning The report stressed Tuesday that while the dollar retains a rupee in its strong clutch for the entire FY22 financial year, the last two months proved to be the worst.
According to currency dealers, the demand for the dollar has never dropped, which has not allowed local currency to remain anywhere.
They say the high demand for dollars is the main reason for the bullish trend in the stock market. The political drag on the ruling government over the reversal of petrol and electricity subsidies – a requirement for the introduction of the International Monetary Fund (IMF) loan program – has also eroded stakeholder confidence.
During this period, the decline of the rupee is also influenced by the uncontrolled increase in imports and the slow pace of export growth.
Rising oil prices have doubled oil import bills, but oil imports are generally on record. In April, imports increased by 72pc, leaving no room for the government to improve its foreign balance.
Furthermore, foreign exchange reserves have grossed $ 10.3 billion, the lowest since June 2020.
Currency brokers say the unexpected high bill and low foreign investment did not support the exchange rate while more than 13bn of the default account already exists as a challenge to the government.
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