The American currency shed Rs1.11 in value against Pakistani Rupee, plummeting to an interbank rate of Rs296.86. Since the crackdown began across the country against currency hoarders, the price of the USD decreased by Rs10.25.
In the open market, the price of the USD also decreased by Rs297 taking down the value of American currency by Rs33.
Pakistan's economic landscape is undergoing a transformation as the value of the US dollar continues to depreciate in the interbank market, fueling optimism and boosting foreign direct investment (FDI).
The weakening dollar has proved to be a boon for Pakistan's exports, enhancing the competitiveness of Pakistani goods in international markets.
As the nation's exports become more attractively priced, sectors such as textiles, manufacturing, and agriculture are witnessing a surge in demand from foreign buyers.
On the other hand, the Pakistani stock market experienced a remarkable surge as the central bank decided to maintain interest rates and a substantial reduction in the current account deficit.
The Pakistan Stock Exchange's benchmark, the 100-Index, soared by 300 points, reaching a new high of 45,950 points.
This unprecedented rally in the stock market was triggered by the State Bank of Pakistan's decision to keep interest rates unchanged.
'Historic surge in foreign investment'
August 2023 witnessed a historic surge in foreign direct investment (FDI), surging to an astounding $146.1 million.
This staggering figure represents a remarkable 67% increase in foreign investment compared to the previous month, according to the State Bank of Pakistan. Notably, FDI for the same period also showed remarkable growth, up by 15.44% when compared to August of the previous year.
Additionally, the reduction in the current account deficit, achieved primarily through higher remittances and robust export performance, has played a pivotal role in attracting foreign capital.