Karachi: Due to the dollar’s strengthening versus other major currencies globally, Pakistan’s currency lost Rs 0.04 to Rs 277.68 against the US dollar on Monday’s interbank market, primarily undoing Friday’s gains.
Over the weekend, the rupee increased by Rs 0.20 to Rs 277.64 vs. the dollar, according to data from the State Bank of Pakistan (SBP). The local currency decreased by a mere Rs 0.01 to Rs 278.63/$ on the open market compared to Friday’s value, according to the Exchange Companies Association of Pakistan (ECAP).
Analysts speculate that the US economy’s recovery contributed to the currency’s strength, outperforming other major world currencies like the Chinese yuan. The Pakistani rupee was subsequently affected by this trend as well.
Furthermore, rising geopolitical tensions affected the world economy, especially in the Middle East following Israel’s strike on Iran on Saturday. Along with an increase in Israeli aggression in the region and a decline in Chinese economic output. The rupee and numerous other currencies were negatively affected by the deteriorating circumstances.
However, the local currency ignored several significant events. For example, Pakistan will get $2.7 billion in financial support over four years from the Asian Development Bank (ADB).
Moreover, through a currency swap arrangement, Finance Minister Muhammad Aurangzeb requested another $1.4 billion loan from China. A rise in Chinese investment in Pakistan under the CPEC project was also mentioned in reports.
Similar to the global trend, the price of gold fell Rs 900 to Rs 283,400 per tola (11.66 grams).