The value of the US dollar continues its downward spiral, as the local currency keeps regaining its lost ground.
At the start of the first day of the trading week, the American currency lost 95 paisas in the interbank market and fell back to Rs302.
A short while later, the greenback lost Rs1.55 to the Pakistani rupee and dropped to Rs301.4 in the interbank market.
The dollar closed the trade for the day with a loss of Rs1.79 and was traded at Rs301.16.
The American currency took a hit over the last week against the Pakistani rupee and dropped significantly in both the interbank and open markets, eventually achieving an equal value in both.
According to an interbank currency dealer, the dollar has dropped by a massive Rs6.10 since hitting a record high rate.
In the open currency market, the dollar has come down by Rs2 to Rs300, as per the dealer. Since achieving a record high level, the American currency has lost a good Rs30.
On Friday, the dollar depreciated by Rs3 in the open market, and dropped to a staggering Rs303, effectively bridging the gap with the interbank market rate.
In the interbank market, the greenback depreciated remarkably, as its value plummeted by Rs1.84 to reach Rs303.10.
Also Read: USD exchange rates stabilize in interbank, open market
This difference has historically played a crucial role in stabilizing currency markets, but recent events have seen it reduced to less than half a percent, a far cry from the International Monetary Fund's (IMF) target of 1.25%.
In the preceding week, the rupee displayed a notable uptick. A crackdown on smuggling and speculative activities within the currency market played a pivotal role in reversing the rupee's fortune after it hit an all-time low just last Tuesday.
The State Bank of Pakistan (SBP) took decisive action to fortify controls on exchange companies, while reports of the army chief's intervention and the deployment of law enforcement personnel at currency dealer outlets contributed significantly to the rupee's resurgence.
On the international stage, the US dollar found itself on the defensive in anticipation of this week's forthcoming US inflation data, which promises to be a significant factor influencing global currency dynamics.
The greenback fell broadly, distancing itself from its three-month highs struck against the euro and the British pound last week.
The euro showed a modest upward trend, closing 0.21% higher at $1.0722, marking the end of an eight-week losing streak as observed on the preceding Friday. Meanwhile, the British pound also made gains, registering a 0.3% increase to reach $1.2503.
Conversely, the US dollar index, which had recently concluded a remarkable eight-week winning streak, marking its most extended run since 2014, experienced a slight dip of 0.12% to settle at 104.72.
