USD to PKR rate jacks up on Aug 21

KARACHI: On August 21, the US dollar (USD) witnessed an increase by Rs1.35 in the interbank market, concluding at a significant high of Rs297.13.

Since the installation of the caretaker government, the US dollar has appreciated by 2.3%, equivalent to Rs8.64. Notably, on August 12, the dollar ended at Rs288.49 in the interbank market, marking its weakest closing point since May 11. It has also approached dangerously close to its all-time historical low against the US dollar in the interbank market.

Looking ahead, there is an anticipation that the Pakistani rupee will continue to face challenges as foreign exchange inflows appear to have dwindled. Financial experts attribute the decline of the rupee to heightened payments for imports, coupled with the State Bank of Pakistan’s decision to ease restrictions on imports. Additionally, market observers are anticipating a subsequent wave of inflation due to the rise in energy costs.

Given these circumstances, experts predict that the pressure on the rupee will persist and may even surpass the 300 level in the near future.