Dollar jumps two rupees in a day

The dollar in the open market jumped nearly two rupees on Wednesday to cross the Rs160 mark, according to rates shared by the Exchange Companies Association of Pakistan (ECAP).

The dollar rate stood at Rs158.25 on Tuesday in the open market. Exchange companies were selling dollars for Rs160.20 on Wednesday.

“This is a short-term hike,” said Zafar Paracha, general secretary of the ECAP. “Other important factors show that the dollar will drop again.”

Paracha added that the State Bank of Pakistan has taken initiatives that have paved the way for foreign exchange to come into the banking channel, such as the Roshan Digital Accounts.

Related story: How long will the dollar rate keep dropping?

He added that Pakistan has strong dollar inflows due to improved remittances.

“There are some speculations in the market. And some negative news, such as the UAE may not be letting Pakistanis into the country, has affected the market sentiments today,” Paracha explained the sharp decline in the dollar rate on Wednesday.

“According to my assessment, the dollar will drop to Rs157. I wouldn’t be surprised if it drops to Rs155,” he said.

Last month saw the dollar value against the rupee dropping.  

According to experts, the dollar is losing steam internationally and it’s not just the Pakistani rupee that has been appreciating – the Pound and Euro are on the rise as well.

But in Pakistan, several other factors have also been in play, not just the dollar’s international standing. Remittances have increased and the current account has also been in surplus for four straight months.