The value of rupee keeps on falling down against the dollar. Presently the rupee went down to record low at Rs 126 against the dollar in the inter-bank market.
As per the news reports after the State Bank of Pakistan’s decision to increase the key interest rate by 100 basis points to 7.5% the rupee was trading around Rs 125 in the inter-bank market. On Friday the value of rupee against the dollar was Rs121.55/
In the first 11 months of the fiscal year, Pakistan suffered from account deficit of $16 billion. The rupee was devalued thrice against the dollar in the fiscal year 2018 which resulted in a decline in foreign exchange reserves.
On Dec 8th, 2017 the government devalued the rupee by 5%. Then on Mar 20, 2018, the rupee was devalued by 4.5% to Rs115. On June 11th, the Pakistani Rupee hit a record low at Rs 122 per dollar in early trade at the interbank. Now it keeps on going down.
Must read: Rupee currency weakens against the US dollar
Back in May, the rupee was continuously falling against the dollar in the open market. In April 2018, the US dollar value went up to Rs119.50 on the market. In March, US dollar value went up by Rs 4.93 in the interbank market. Rupee price went up to Rs 117.
The depreciation of rupee against the dollar is quite concerning for Pakistani economy and stability. An increase in Rupee prices against the dollar directly affect the fuel prices, car prices, leads to inflations and negatively impacts the economy of the country. Each month government of Pakistan decides to increase the fuel prices. Similarly, in 2018 the leading automakers increased the car prices thrice, making life difficult for the customers.