19 July,2022 , 02:03 pmAdmin

US Dollar soars to a new high against PKR. Trades at 221 interbank

On Tuesday, the Pakistani rupee fell further in interbank markets against the US dollar. The intraday trade saw the foreign currency gain Rs5.80

Today, the rupee is traded on the open market at Rs222 per dollar. Experts believe that the dollar's upward trajectory is due to the political uncertainty created by the crushing defeat of the ruling PMLN by PTI in the Punjab By-elections.

According to data released Monday by the State Bank of Pakistan, the local unit lost Rs4.25, which is 1.97%, in comparison with the US dollar. The close was at an all-time low of R215.20.

It was the highest daily depreciation day-on-day since March 26, 2020.

The rupee closed at a record low of 219.93 against the greenback on June 22nd. Since then, the currency has been volatile.

Analysts think, however, that domestic political and economic conditions are not the only factors in play.

Khurram Shehzad, Alpha Beta Core CEO, stated that the dollar is becoming stronger on the global market against all world currencies.

Schezad spoke out about Pakistan's financial condition, saying that Pakistan's foreign account problems "aren't settled as yet, IMF (International Monetary Fund is still not on board, and flows are yet to materialize".

He said, "Global rating agencies have given a negative outlook for the economy. This is an additional burden that is weighing heavily on the financial markets in general as well as the foreign exchange market in particular."

"Pakistan is on the brink of disaster"

Asad Umar, former finance minister of Pakistan and PTI leader, said Tuesday that Pakistan is on the verge of disaster due to the plummeting value of its rupee.

Asad Umar, a Twitter user, stated that the rupee had fallen to a historic low of 222-221 against a greenback in interbank markets.

The leader of the PTI asked, "Will they end this terrible experience of foreign interference themselves or will they have to do it themselves, like the people in Sri Lanka?"

"Things are not great"

Former Chairman of the Federal Board of Revenue, Shabbar Zaidi, stated that although things are not great, they must be corrected.

He stated, "The rhetoric used in politics is completely disconnected from the economic situation. There is a limit to the extent of deterioration. It becomes impossible to manage once it has been crossed."

He suggested that Pakistanis should not only look at themselves but also consider the needs of their country to get out of the current economic crisis.

Miftah Ismail should take action

Shahbaz Rana, a journalist, stated that the State Bank of Pakistan has been working without a head for the last 75 days. In the two-day span, the local unit had lost Rs10 to the US dollar.

According to the journalist, Finance Minister Miftah Itzam cannot afford to sit still and watch the rupee sink.

It's the height govt indecisiveness. He wrote that if the dollar isn't controlled, petrol and electricity prices will rise to an unimaginable height.

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