The Pakistani rupee has failed to hold its ground against the US dollar as the local unit declined by 89 paisas in the interbank trading on Friday, reported 24NewsHD TV channel.
As per the State Bank of Pakistan, the local currency failed to gain market confidence and slumped during the trading today. The US dollar surged to Rs288.49, gaining 40 paisas in its value at the end of the business.
Yesterday, the local currency shed 14 paisas in its value against the greenback which settled the trade at Rs287.46.
https://twitter.com/StateBank_Pak/status/1689596308649299974
On the other hand, the trend in the stock market remained bullish with the benchmark KSE-100 Index achieving nearly 1,100 points by 10:40 am today.
The volatility in the market could be attributed to political uncertainty as no decision has so far been made with regard to the interim setup.
Pakistan is facing a deep economic crisis with falling foreign exchange reserves. The reserves plummeted to $13.34 billion, registering a $124 million decline, for the week ending on August 4, 2023, as reported by the State Bank of Pakistan on Thursday.
Apart from this, the inflow of dollars in the shape of remittances has also registered a 19.3% decline during the first month of the new financial year.
According to the SBP, the country received workers’ remittances amounting to $ 2.027 billion in July 2023 compared to $ 2.511 billion in July 2022, showing a drop of $ 484 million.
https://twitter.com/StateBank_Pak/status/1689597171400855552
The decline in forex reserves has raised concerns about Pakistan’s capacity to handle its imports, hence less confidence in the stability of the local unit in the international currency market.
Reporter Ashraf Khan