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US Dollar Gains Against Pakistani Rupee as Economic Challenges Persist

In early interbank trading on Wednesday, the US dollar strengthened further to reach Rs279, marking a Rs1.97 increase against the Pakistani rupee, breaking a losing streak that extended for over a month. Simultaneously, the open market witnessed a surge in the dollar’s value by Rs2.50, reaching Rs280.

The rupee’s recent upward trajectory led to an official exchange rate of Rs277.03 on Tuesday, following a 20 paisa increment in the greenback value, recovering from a historic low of Rs307.10, resulting in a net gain of Rs30.30.

Observers are closely monitoring whether the rupee’s momentum has waned, potentially resulting in an increased demand for the dollar, particularly in light of the upcoming review of the IMF deal. This review may introduce stricter adherence to conditions, including a potential gas price increase.

Any further rise in utility rates is anticipated to exacerbate inflation, escalating the costs of conducting business and imports, which could potentially hinder economic recovery efforts despite the relatively stronger rupee.

The ongoing economic crisis in Pakistan, marked by record-high inflation and interest rates, has led to increased living costs and operational expenses, posing significant challenges to the nation’s economy.

While Pakistan grapples with a severe economic crisis, it’s worth noting that the rupee’s steep depreciation was influenced by market manipulation, encompassing hoarding, illegal trading, and cross-border smuggling. The government has taken effective measures to combat these activities.

Syed Hassan Shah

Social activist and junior reporter at thepost e-newspaper.

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