The value of the US dollar experienced a minor decrease of 13 paisas in the interbank market, with the exchange rate now standing at Rs278.
Despite the slight dip, fluctuations in the dollar-to-rupee exchange rate have been significant throughout 2024, heavily influenced by Pakistan’s economic conditions and the International Monetary Fund (IMF) programs.
Since January 1, 2024, the dollar has seen consistent volatility in the wake of Pakistan's ongoing IMF loan negotiations and reform programs. At the start of the year, the dollar was trading at around Rs225, but as the government implemented IMF-mandated economic adjustments, including cuts to subsidies and increased taxation, the rupee faced depreciation.
By mid-year, the dollar surged to Rs300, hitting a record high in the interbank market due to concerns over Pakistan's foreign exchange reserves and fiscal health.
The approval of a new IMF tranche in July brought temporary relief, causing the rupee to recover slightly. However, ongoing fiscal challenges, inflation, and external debt payments continue to exert pressure on the exchange rate, contributing to today's level of Rs278.
