Pakistani rupee suddenly depreciated on Friday by one rupee as dollar reaches 142.7 in open market.
The depreciation of Pakistani rupee was observed due to speculation that Pakistan has agreed to let rupee weakens as per the instructions of IMF. The market is expecting a further drop in rupee value to 165-170 against the US dollar.
During the day, the rupee remained stable at 141.39 to the greenback in the inter-bank market, the State Bank of Pakistan (SBP) reported.
The speculations in the market have led people in need of dollars to buy foreign currency before it goes higher. This would increase the demand for it, which would ultimately decrease the rupee worth further. Currently, the major buyers of foreign currency are pilgrims who are about to go for Umrah or later for Hajj.
With this latest drop of 1.1 on Friday, the accumulated fall rupee observed was by 1.3 against USD in the last 4 days. Since December 2017, SBP let the rupee drop by 34% to counter the balance of payments situation.
Following the open market currency fluctuations, gold prices also got affected. The All Sindh Sarafa and Jewellers Association announced an increase of Rs.1,200 per tola (11.66 gm), pushing it to Rs. 69,200. It will remain valid till Saturday, as the prices are announced for 24 hours, except for Sundays.