Federal Budget

Pakistan rupee appreciates by Rs7 against US dollar in open market

Pakistan rupee appreciates by Rs7 against US dollar in open market

Business

Exchange rate hovers around Rs311

KARACHI (Web Desk) – The Pakistan rupee substantial gains against the rival US dollar in open market during early trading on Wednesday, with the exchange rate hovering around Rs315, as the continuous slide in its value has crippled the economy while pushing the prices even higher.

It means the rupee has received a Rs7 during the session so far – a development that would install confidence in the business community which suffers from rising cost of doing business, making it impossible to improve or expand trade or industries.

The latest rally means that the rupee has appreciated by Rs18 during the past two days after dipping to the level of Rs333 – a trend that began with the assurance given by Chief of Army Staff Gen Asim Munir about overseeing the currency market.

On Sunday, Gen Asim had promised transparency in exchange rate and bringing currency exchanges into tax net after businessmen during a meeting in Lahore called for greater control on the money market.

“The money exchanges would be brought under the purview of taxation, fostering transparency in dollar exchange and interbank rates,” he said.

Read more: Rupee collapse is the reason behind all ills Pakistan is facing

Pakistan is facing a plethora of challenges because of devaluation including reduced domestic demand or consumption and incentivizing the grey economy by encouraging the people to stash dollar while also fueling inflation in the country.

Meanwhile, the cost-of-living crisis in the absence of any social security means longevity, which otherwise is a great news, will be a problem for many, especially those belonging to the low income groups.

Read more: We are sorry to say that living long isn't something great if you aren't affluent

At the same time, a weaker currency means you will remain hostage to the dollar as the affected people start relying more on greenback for being strong, stable and reliable as a combination of depreciation and inflation makes them even more vulnerable with each passing moment. 

Read more: Dollar pull effect: How a weaker currency makes you hostage to dollar

It’s a developing story. Details to follow