United States dollar climbed above Rs 193 in interbank market on Friday morning reaching new historical maximum and breaks the level of the previous day record which exceeded the mark of 192 rupees.
According to the Forex Association of Pakistan (FAP), day start the dollar strengthened by 1.10 rupees compared to the previous day’s close. of Rs 192 and reaching Rs 193.10 around 11:00 in interbank trade.
Today is the fourth day in a row dollar rose to record high against rupee, with in international currency peaked of Rs 188.66 in interbank market on Tuesday, then rising to 190.90 rupees. on Wednesday and rising past 192 rupees on Thursday.
This was stated by the chief executive officer of Alpha Beta Core Khurram Shehzad. Dawn.com value was expected of dollar would rise further today by linking development to the expected strengthening of U.S. dollar in in international market and increase in interest rates in United States.
“Moreover, our macroeconomic indicators are weak, and the IMF (International Monetary Fund) also No on board,” he added, referring to the uncertainty around the deal with in international pawnbroker and delay in release of tranche of $1 billion.
AT light of for these reasons, Shehzad explained, the currency market was down and the ruble continues to lose ground against in dollar expected.
It’s a free fall of rupee against in dollar It has also attributed to the country’s high import costs.
BUT Dawn report on Wednesday said rising exchange rate shook economy.
The rupee lost its value mainly because of out of control rise in import and relatively slower pace of growth in export. It was reflected in in trade deficit, which reached $39 billion. in July-April.
Meanwhile, Mattis Global – a web-based on financial data and analytics portal – attributed to the dollar Russia’s upward trajectory to the ongoing economic crisis in country, especially the melting foreign exchange reserves and political uncertainty.
foreign exchange reserves of National Bank of Pakistan declined by $190 million to $10.308 billion for the week ended on May 6, central bank said on Thursday. General reserves of the country also fell to $16.375 billion, while assets of commercial banks for the week amounted to 6.067 billion dollars.
Daily devaluation of local currency can cause intense panic-like situation as investors found ignorant. rising inflation and devaluation of local currency means declining purchase power of consumers, as merchants ask for higher profit to keep your investment.
Malik Bostan, Chairman of FAP proposed to limit the import of non-essential goods to prevent dollar from rising further against rupee.
Speaking with Dawn.comhe also recommended limiting use of oil products to maintain the stability of foreign exchange reserves. “Unnecessary use of diesel for Run big vehicles should stop further increase in our oil consumption, which has grown by more than 30 percent is preventable.”
He also proposed that the political parties work together to develop a “charter of economyto stabilize the ruble exchange rate.