The US dollar hits another peak against local currency at Rs. 203.86 with an increase of Rs1.51 at State Bank of Pakistan on Monday.
It is not only the currency market alone but also the entire trade and industry including the service sector are clueless and stunned owing to the rupee’s devaluation as the government also seems helpless to stop the rupee’s sharp devaluation.
There was a difference between the currency rate shared by the currency dealers who said the dollar was traded as high as Rs204.50 as also the Exchange Companies Association of Pakistan, whereas the currency rate provided by the SBP the dollar was closed at Rs203.86.
The dollar was traded at Rs205 with an increase of Rs2 on a day-on-day basis in the open market.
Since the beginning of the new government, the dollar has enjoyed by Rs21 and as per the trend, it will continue to keep the move upward. The incumbent government did not come up with a plan to secure the local currency. As the dollar is the main factor to push inflation in the economy. It has also increased the cost of imported goods and services prices costlier.
The dealers of the currency are unhappy owing to dollar inflows from anywhere that are secured by the government. It seems that it has failed to secure it. The demand for dollars is still high but the rapid appreciation in its price is not explained.