US dollar reaches record high against rupee for third consecutive day
- By Anjum Wahab -
- Jul 21, 2022
KARACHI: Pakistani rupee on Thursday hit another low after the US dollar strengthened against the local currency following a delay in the release of a US$1.17 billion tranche from the International Monetary Fund (IMF) despite a staff-level agreement and political uncertainty in Punjab, ARY NEWS reported.
In the interbank today, the US dollar gained Rs1.89 against the rupee and traded at Rs226.81. In the open market, the greenback traded between Rs226 to Rs227.
Interbank closing #ExchangeRate for todayhttps://t.co/UvkvZjtlJ4 pic.twitter.com/KWQwiIEdpC
— SBP (@StateBank_Pak) July 21, 2022
Yesterday, the dollar rate reached an all-time high against the Pakistani rupee and is currently trading at Rs 225 in the interbank market. Political unrest wreaked havoc on the currency market for the second consecutive day.
According to details, the greenback spiked sharply by Rs3.01 in the interbank market to settle at Rs 225. The USD is trading at Rs226-227 in the open bank market.
Interbank closing #ExchangeRate for todayhttps://t.co/cOAZT31IG2 pic.twitter.com/7yW54WWKcc
— SBP (@StateBank_Pak) July 20, 2022
The State Bank of Pakistan (SBP) attributed the 11-rupee change in the exchange rate in just two days to the “market-determined exchange rate system” under which the current account position, news stories, and domestic uncertainty contribute to the daily currency fluctuations.
Read More: Economic turmoil: Dollar spikes by Rs 8.80, PSX loses 608 points
In an apparent attempt to downplay the depreciation, the SBP said a “better measure” of the rupee’s strength is the real effective exchange rate, which takes into account the currencies in which Pakistan trades in inflation-adjusted terms.