US dollar jumps to Rs158.44 in interbank market
Dollar in open market was recorded at Rs159.60.
KARACHI (Dunya News) – The exchange rate of US dollar increased by 19 paisas in interbank to Rs158.44 on Friday.
However, according to forex association of Pakistan the buying and selling rates of dollar in open market was recorded at Rs159.60.
The rupee had recovered over Rs2.13 within last nine working days. Earlier, the rupee was observed to cumulatively depreciate against the US dollar, and consequently prices of essential commodities were surged, increasing hardships for the general public.
The SBP let the rupee depreciate significantly in the inter-bank market after finalizing an agreement with the International Monetary Fund (IMF) for a loan program on May 12.
The IMF asked Pakistan to end state control of the rupee and let the currency move freely to find its equilibrium against the US dollar.
On the other hand, the World Bank Group also supported the idea of leaving the rupee free from state control in an attempt to give much-needed boost to exports and fix a faltering economy.
The stringent conditions – on which the global moneylender formally approved the bailout package of $6 billion for Pakistan – seem to have exerted more pressure on the local currency.
The gradual drop in the rupee had come due to high demand for the dollar against thin supply as the country continued to make aggressive international payments to partially pay off huge foreign debt and for imports.
Economists are of the view that effective measures must be implemented on the priority basis to recover the state from the balance of payment deficit.
Besides increased demand of the greenback in the local market, they have termed ‘balance of payments deficit’ as the main reason in the recent hike in the value of the US dollar.
Moreover, they consider that state’s exports and investment are required to grow significantly, and the imports must be reduced to remove pressure on the local currency.
According to experts, the government must ensure implementations on economic policies after the deal with the IMF.
It is anticipated that the US dollar rate would fluctuate for some time, and the value of the Pakistani rupee would stabilize after proper implementation of the economic policies.
