KARACHI : August 4, 2022. Free fall of US Dollar against the rupee is continuing in the currency market . On Thursday , US dollar witnessed a major decline of Rs 11, taking it down to Rs 217 on the closing of the currency market.
A day earlier, US dollar value against had closed at 228.8 in open currency market .
US dollar had begun to depreciate against the local currency after its long bashing for over one month. On July 16, US dollar value vis- a- vis the rupee had gone all time high in Pakistan and it touched a level of 250 . This trend had created a panic in Pakistan, causing a fear of erosion of its forex reserves .
At one stage it appeared as if the rupee has been left for a free fall against US dollar as none of the regulatory authority including State Bank of Pakistan and ministry of Finance were sitting and waiting for further depreciation of the rupee.
Unprecedented appreciation of US dollar continued till end of July last and it opened up a floodgate of price hike as the rates of every thing from edibles to vehicles and medicines soared up in proportion to the appreciation of US dollar.
The last week’s intervention of the army chief and calling to a US official to pressurize International Monetary Fund (IMF) changed the game in the currency market to rescue the rupee.
The rupee started to re bound on second last working day of the last week and it started to make big gain from early this week. During the first three days of the current week, the rupee has bounced back to 217 level .
This handsome gain of the rupee is a good news not only for the currency market but also for overall economic situation of Pakistan. Hopefully , the rupee will gain more value against US dollar in coming days and ultimately it will stablise Pakistan’s financial market and overall economy of the country to restore confidence of the investors .
The stability in the rupee value can guarantee stability in the prices of everything in Pakistan including house hold items and give a big sigh of relief to the people who was moaning under unbearable price hike .
