Rupee Currency Weakens Against US Dollar – Research Snipers

Rupee Currency Weakens Against US Dollar

On Tuesday Rupee against dollar was 104.5/104.7 but just one day brought a slight change in this as on Wednesday Rupee weakened to 104.7/104.9 against dollar. There have been variations and fluctuations in the currency market frequently in the recent months. The market has seen heavy rise and fall on the price of Rupee in relation to dollar. If we look overall, in the long run Rupee has stood its ground. Saying this is especially true in reference to the high instability Rupee experienced when it weakened to Rs103 to a dollar from Rs98. The reason for this huge shift was political instability in the country. Due to alleged election rigging the country faced political deadlock.

Also read: Trade deficit in Pakistan continues to get record high

Now currently in order to control the demand for dollars the central bank has enforced 100% cash margin on specific user items.

For around three years Rupee is the finest performing currency in Asia. This has been true even though dollar’s favor and appreciation has been with other currencies in Asia. As per International Monetary Fund Pakistan’s Rupee is overestimated. The range of this overvalue is also given by them which is 5-20%.Though experts say that the export of Pakistan has been negatively affected due to artificial support for the rupee.