Will Pakistan’s dollar rate fall further?

The dollar rate in Pakistan fell again today after the Pakistani rupee recovered by Rs9.8 or more than 4% versus the US dollar after Wednesday’s interbank market closure.

Analysts predict that if the country remains stable, the local unit will continue to gain ground.

In a significant event, the dollar lost 4.19 percent versus the rupee, the most since November 2, 1998, when the greenback fell Rs5.10.

Speaking on ‘Geo Pakistan,’ Exchange Companies Association of Pakistan (ECAP) Chairman Malik Bostan stated that numerous reasons have contributed to the rupee-dollar parity.Even today, during intraday activity in the interbank market, the rupee continued to rise versus the dollar.

Apart from the reduction in import bills and army chief General Qamar Javed Bajwa’s telephone conversation with US Deputy Secretary of State Wendy Sherman to help expedite the revival of the International Monetary Fund’s (IMF) loan programme, the money lender’s statement, according to Bostan, has played a key role in the dollar’s fall.

Esther Perez Ruiz, the IMF’s Resident Representative in Pakistan, said in a statement Tuesday that a board meeting is provisionally set for late August after enough finance assurances are secured. If the IMF provides the $1.2 billion later in August, the dollar might fall to 190-180 against the Pakistan rupee and continue to smash records, according to Bostan.”

…this was the dollar’s actual value. The dollar was not at such highs prior to the country’s political unrest and the Punjab by-elections, which shook everything, including the markets “He stated.