US Dollar was raised to all-time higher figures today and crossed Rs.158 in the open market while trading. On the second consecutive day, Pakistani Rupee continued to depreciate as against the US Dollar and dropped by over Rs.5. It dropped slightly at the end of the day and closed at Rs.157.50, while Inter Bank’s rate was recorded at Rs.157.
In line with the dollar, Gold Prices also took the impact and were raised to Rs.75,900 per 12 grams (tola), with an increase of Rs.2,700 per 12 grams (tola).
The unprecedented and horrendous rise in the prices is much critiqued by the traders and money exchangers. They demand immediate intervention by the government to control the continuous depreciation of the rupee.
An important fact to note here is that, when the rupee is depreciated and the US dollar goes up by merely one unit, the foreign debts are automatically increased by millions of dollars. Pakistan is already under economic crisis, subject to the repayments of the foreign debt servicing, while the downward trend of the local currency is adding more oil to the fire.
Local banks were also in dilemma over the situation and a senior banker showed his concerns by commenting that the there was a panic like situation in the market since every other offer to sell the dollar was higher than the previous one. Due to no intervention by the State Bank, bankers expect the dollar to go up to Rs.180 in few weeks.
Last month, local celebrities and religious preachers (Ulemas) initiated a drive against the hoarding of dollar for profit earning. Many famous actors joined the initiative by influencing masses to strengthen the local currency and withdraw the hoarded dollar to increase the supply of the international currency in the trading market.