Dollar continues to slide
Photo: AFP
The dollar dropped 40 paisa against the rupee and was selling at Rs139.20 in the early hours of the open market trade on Wednesday.
The greenback fell slightly below its closing price of Monday when it was trading at Rs139.60. The dollar had been hovering at the level of Rs140 for two weeks before it fell below that mark, an indication it has become stable for now.
On November 30, the dollar jumped Rs9.5 to Rs143.5 in the interbank market in what remains its highest intraday gain and highest ever level in its history respectively. However, it has come down to Rs139 since then. The interbank rate is the benchmark rate that determines the rupee’s value against the US dollar and usually remains slightly below the open market rates.
Related: Dollar falls below Rs140
Since December 2017, when a dollar was worth Rs106, its rate has appreciated more than 30% against the rupee, witnessing two of its biggest ever single day jumps in the short span of one-and-a-half months.
The surge in dollar price against the Pakistani rupee is due to the change in our exchange rate policy and the rising value of the dollar in the international market. All major currencies that were pegged against the dollar depreciated this year. Besides, Pakistan has moved away from a managed exchange rate regime to a free float policy, allowing market forces of demand and supply to determine the dollar price. The State Bank of Pakistan says there is a demand and supply gap in the market, which has been causing this movement.
Pakistan has secured back-to-back aid packages worth $6 billion from Saudi Arabia and UAE. It has already received $2 billion from the Saudis, which provided temporary stability in the exchange rates by increasing our dollar reserves. The country is also expected to join the IMF programme in March and will be able to get between $6 billion or more depending upon its needs, which will help stabilise exchange rates.
Article source: https://www.samaa.tv/news/2018/12/dollar-continues-to-slide/