KARACHI: On August 23rd, the exchange rate between the US dollar (USD) and the Pakistani rupee (PKR) experienced a significant surge in the open market.
The US dollar strengthened by Rs6, reaching a value of Rs312 compared to its previous rate of Rs306.
This increase marked a notable milestone as the dollar achieved a historic peak against the Pakistani rupee.
Conversely, in the interbank market, the US dollar’s appreciation was relatively milder, rising by Re0.63 to conclude at a level of Rs299.64.
To provide context, the US dollar had ended the preceding day at Rs299.1 in the interbank market.
The ongoing downward momentum pushed the Pakistani rupee to a new record low against the US dollar, as it depreciated 0.21% in the inter-bank market on Wednesday.
Globally, the US dollar perched near a two-month peak on Wednesday as investors looked to the Federal Reserve chair’s speech this week for cues on the path of monetary policy, while the yen loitered near 146 a dollar, keeping traders guessing on any intervention.
The dollar index, which measures the US currency against six rivals, was at 103.55, not far from the two-month high of 103.71 it touched on Tuesday.
The index is up 1.6% in August and is on course to snap its two-month losing streak.
Markets are pricing in an 86% chance of the Fed standing pat at its policy meeting next month, the CME FedWatch tool showed, but the odds of the US central bank hiking interest rates one more time this year toward the end of the year have been rising.