In January, the dollar was trading at Rs110.7 against one rupee but since then it has increased 15.6%, reaching an all-time high of Rs128 on Monday due to pressures on the country’s external front. India is facing a huge decline in Rupee against US dollar, which has put a smile on the faces of exporters as they will get more Rupees per US Dollar, but is a sign of worry for the Indian economy as India is a net importer and is currently facing a trade deficit of $78 billion. In last week, the foreign exchange reserves of Pakistan increased by $268 million. Bilal Moti, managing partner, Windmills Group, said the rupee's massive depreciation against the dollar is a representation of country's reserves, balance of payment, debt position and GDP levels. In the past decade, the rupee has appreciated seven times against the dollar in March. New Delhi: The Indian rupee continued to drop against the US dollar on Thursday with the Indian currency falling to a record low of 69.09 against the greenback.The currency has cracked over 8% in this year so far emerging as the worst performing currency among its Asian peers. (WebDesk) - The Pakistani rupee has experienced a worst fall ever against US dollar. In January, the dollar was trading at Rs110.7 against one rupee but since then it has increased 15.6%, reaching an all-time high of Rs128 on Monday due to pressures on the country’s external front. Analysts predict the dollar to go further up before settling somewhere around Rs130. The domestic unit finally ended 2 paise higher at 72.97 against the US dollar, marking its fourth straight session of gains. On Thursday, the rupee had settled at 72.99 against the American currency. In the last four business days, the dollar has risen by Rs9.60 against the Pakistani rupee. The IMF has long advocated Pakistan to loosen its grip on the rupee, and estimated the real exchange rate was overvalued by as much as 20 per cent in 2017. At 1130 IST, the Pakistani rupee was trading at 105.50 to the dollar, 0.4 percent stronger than its previous close, having recouped most of the losses it made in Wednesday’s trade. It has been the worst performing Asian currency, losing 35 per cent in the last one year and 17.6 per cent year-to-date. Also Read: Dollar closes at Rs128.26 Analysts predict the dollar to go further up before settling somewhere around Rs130. its sharply declining value against the … This fall comes before the expected signing of a bailout agreement with the International Monetary Fund. The rupee fell sharply against the US dollar today to register a new low as the greenback continued its rally against other global currencies. Another reason why the Pakistani Rupee is getting strong against the dollar is the current account surplus of $792 million during the first quarter of the financial year (July-Sep FY21). macro_action: article, During FY18 (July-May), current account … When the crude oil prices go down, the U.S. saves more dollars in buying it. USD vs PKR – Pakistani Rupee Losing Ground. The rupee has been consistently falling due to widening trade deficit, dwindling foreign exchange reserves and free-float exchange rate mechanism agreed with the International Monetary Fund (IMF) to determine market value of the currency. But March 2020 could be hard on the exchange rate and the rupee’s sharp drop to 73.25 per dollar … The episodic jolts in the rate of dollar in Pakistan, signaled towards alarming economic conditions of the country. The Indian Rupee is not taking halt against US dollar, falling continuously to touch the lifetime low of 71.10 against the greenback. Pakistan has been running on trade current account deficit for past years. Open trading on Monday caused the Pakistani rupee to fall in value against the US dollar. Click/tap here to subscribe to Khaleej Times news alerts on Telegram. The rupee has been consistently falling due to widening trade deficit and an agreement reached with the IMF. Pakistan’s economy is going through a familiar boom-and-bust cycle; debt is soaring, inflation is rocketing, and reserves are falling after a deficit blowout. The continued borrowing would also trigger further imbalance turning the Pakistani economy fragile. 1. The rupee weakened against the US dollar at Rs160.32 in the inter-bank market on Tuesday compared with Monday’s close of Rs159.98, according to the State Bank of Pakistan (SBP). The US dollar has gained Rs7.46 in the past three days. However, the Chinese Renminbi and Taiwanese Dollar are down over 2 per cent each against the greenback. Global economic slowdown: This the major factor which is … Lilly: Drug can prevent COVID-19 illness in nursing homes, India's homegrown vaccine developer warns some to avoid shot, A new COVID-19 challenge: Mutations rise along with cases, The wretched condition of Pakistan’s prisons continues to aggravate. The UAE is Africa’s fourth-largest global investor with an... READ MORE, Abu Dhabi Sustainability Week 2021 consists of a series of high-level ... READ MORE, The acquisition will be another step towards cementing Agthia’s ... READ MORE, Natural gas will play a leading role in national energy strategies... READ MORE, Those who have already received the first dose and are awaiting their ... READ MORE, The employee had helped a Dubai-based journalist as her Metro card... READ MORE, UAE set to be biggest beneficiary of rapid vaccination rollout, say... READ MORE, More than 24.2 million tests have been carried out. Devaluation – a recipe to economic stability or economic disaster? However, on the other hand some analysts have warned that the Pakistani currency is still over-valued and would continue to fall even after the election. Agthia Group acquires majority stake in Nabil... UAE takes strides in the switch to natural gas. The central bank is unable to support the rupee as its reserves are on the decline due to debt payments. Meanwhile, more Pakistani expatriates are rushing to banks and money exchange houses in the UAE to remit money back home in the wake of record fall in Pakistan rupee against US dollar. 4.08 in the last few months (June 30th to October 7) to Rs. While Rupee will keep on falling against dollar to new lows every week (so from 140 to $1 to 200 to $1 and soon Rs 400 to $1), worker salaries and profits will not be increased accordingly by public and private sector companies and hence the salaried class will be earning far less money in $ terms than what they were earning before. Muhammad Aslam Khan, a Sharjah resident, said Pakistanis remittances are increasing due to decline in rupee's value, but at the same time, inflation back home is increasing to alarming levels. macro_profile: , READ MORE, Dubai announces new Covid safety rules: Full list, UAE: Compulsory Covid tests expanded to include teachers, Coronavirus: UAE reports 3,566 Covid-19 cases, 4,051 recoveries, 7 deaths, Covid-19: Belgium to ban non-essential travel, Dubai fights Covid: New gym rules announced, Pakistani man killed during TikTok stunt on train track, Sheikh Mohammed praises Dubai Metro employee for his kindness, Missile or drone intercepted over Riyadh: Saudi TV, UAE's Covid vaccine success will help lift most restrictions, UAE Covid-19 vaccine: 87,720 residents vaccinated in a day, Russia’s Sputnik V vaccine in UAE: All you need to know. In 2015 the trade and current account deficits were $22.16 billion and $3.12 billion respectively followed by an increase of $23.9 bn to $5.49 bn in 2016 and further it toppled to 32.48 bn and 12.49 bn in 2017. Etihad Credit Insurance, TDB sign agreement. USD-PKR rate may even go higher in the short term. The question now arises that in the presence of increasing deficits why did the currency rate remained relatively stable. Financial analysts are expecting that the next government would have to seek bail-out from International Monetary Funds (IMF) due to widening gap in current account deficit. 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