In early morning trade in the interbank market on Tuesday, the US dollar gained Rs5.80 versus the Pakistani rupee, continuing its upward trend to reach its highest level of Rs221 ever.
The US dollar has risen Rs10.05 versus the local currency in the last two days, and it has risen Rs38.98 overall since the coalition government came into office.
In earlier interbank trade on Monday, the US dollar increased dramatically by a stunning Rs4.30 to reach Rs215.25 versus the Pakistani rupee.
On Monday, the dollar increased by Rs4.25 in interbank trading to settle at Rs215.20.
The US dollar has strengthened by Rs5.55 versus the Pakistani rupee during the past two days in the interbank market, which is also worth mentioning at this point.
The present political climate in Pakistan, according to economic analysts, is exerting pressure on the Pakistani rupee.
The dollar briefly started to decline after peaking at Rs211.93 on June 22 and dropped to a low of Rs204.56 on July 4.
The rupee was weakening, according to Mettis Global Director Saad Bin Naseer, as a result of “panic purchasing [of the dollar] by banks in the interbank market.”
Following the by-elections for the 20 seats in the province, he said that “panic is settling in the financial markets due to worries of a change in [the] administration in Punjab and the Center.” The PTI overwhelmingly defeated the PML-N, which controls the ruling alliance, in the by-elections.
He continued by saying that the Fitch rating agency’s lowering of Pakistan’s outlook from stable to negative added to the market’s concern.
As the future of inflows from the International Monetary Fund, friendly nations, and bilateral sources remained a concern, he added, the demand for the dollar among importers has also “spiked.”